Fraud management: The realities of inaction
September 14, 2020
So, you’ve launched your business, you’ve set up digital payments, and orders start streaming in. Then, out of the blue, your bank sends you a chargeback notice about a fraudulent transaction. What can you do? You don’t know who the culprit is, and now your honest, hard-working business has to absorb the cost and the responsibility.
As a small business, fraud will hit you much harder, extending far beyond losing money to impact workflows and customer trust.
Loss of business
In order to locate and fix a security breach, your business operations will likely be impacted and may even have to shut down. This process could take anywhere from a few days to a few weeks—meaning that not only do you have to face the cost of fixing the breach, but your revenue will also take a hit.
Damage to reputation
2013 saw the much-publicized Target breach that compromised 100 million customer records and cost the company $148 million in direct cash costs. However, the damage to Target’s reputation lingered far beyond this—with customers becoming hesitant to share any personal information or even use their cards in store1. In this situation, Target, a globally recognized brand, was able to bounce back eventually. But this may not be the case for a small business like yours that’s still trying to secure its place in the hearts and minds of consumers.
Potential legal ramifications
If your customers' information is stolen from your business due to a security breach, it could leave you vulnerable to a lawsuit. It’s your responsibility to protect your customers’ sensitive payment information, which in turn will protect your business in the long run. For example, in the case of Target again, a U.S. judge ruled that the business played a “key role” in failing to protect its data center—finding them liable in a class action lawsuit.
Beyond all of this, the biggest risk to your company is inaction. Ignoring the possibilities of cybercrime and fraudulent attacks doesn’t make them go away—and taking preventative action now is likely to save you more time, energy, and money in the future.
Fraud management: We’re here to help
Cybersource’s fraud prevention tool, Fraud Management Essentials, (now available in North America, Europe, and Asia Pacific) empowers small businesses like yours to establish fraud protection strategies designed to enhance and improve the way your business operates with streamlined, easy-to-use functionality.
Fraud Management Essentials leverages insights from over 68 billion transactions processed by Cybersource and Visa each year globally.2 It’s a lightweight, flexible solution that helps deliver more accurate fraud detections, accelerate setup, reducing chargebacks, and empower you to make more informed decisions. With 24/7 customer support and a customer service team that understands growing businesses, we’re here to help protect your business and your customers from fraudsters.