Get Your E-Commerce Fraud Team Ready for the Holiday Rush
By Sarah Beldo /
10 Nov 2015
Santa has a leisurely 364 days to figure out who’s approved for gifts, but what about your business? You face the “naughty or nice?” question every single day – and during the holiday season, more orders and less time can create a perfect storm for fraud. Here are some tips to help you prepare for the busiest time of year:
1. Create and document a fraud strategy specifically for the holidays. Will you be letting more orders through? Are there any new processes for who gets to approve or decline what – and when?
2. Make sure the fraud team is collaborating with other departments, especially marketing and sales. Everyone should know about any promos or coupons that could cause a surge in traffic (or scams). And if you’re planning to change how you’re flagging orders, these other teams will want to know how it could affect their results.
3. Analyze patterns from last year’s shopping surge. Although fraud behavior is constantly changing, it’s best to start off with a solid plan based on historical trends – and then adapt from there.
4. Re-evaluate your risk threshold for what you manually review, to make sure you’re optimizing for conversions. The last thing you want during the holiday rush is to subject your good customers to the headache of verifications and delayed orders.
5. Know that shoppers’ habits will change with the season. This means “if-then” rules for accepting or declining orders won’t work. Typical buyer patterns will be thrown off with shipping gifts, returning unwanted holiday sweaters, and traveling to visit relatives in far-flung destinations.
6. Have a flexible and real-time fraud prevention tool in place that can keep up with increased order volumes and adapt to changing shopping patterns. That way you can focus your efforts on only the truly risky orders.
7. Get everyone up to speed on training and best practices for using your fraud tools before the rush. There won’t be time to sit through webinars and read manuals when you’re in the thick of things.