Credit card fraud has a negative impact on businesses of all sizes, but it can be especially damaging for a startup. After all, people who own these small companies typically do not have a lot of money to help them deal with the losses associated with fraud, and it is also more difficult for them to gain back consumer confidence. Fortunately, one company has recognized this need and taken steps to help startups minimize their potential losses.
How Devastating is Credit Card Fraud?
Even if you have not dealt with a fraudulent credit card transaction yet, the odds are high the one is headed your way. As a merchant, you will be part of a business environment that loses more than a combined $100 billion annually due to fraud such as stolen credit cards. To make matters even worse, a recent report revealed that American credit cards are used in 47 percent of all fraud cases worldwide. In other words, whether you are based out of the U.S. or simply accept credit cards from America, your startup could be in serious trouble if you do not implement proper protective measures.
Reducing Your Fraud Risk
One of the best ways to reduce your fraud risk is to make sure that you have multiple layers of security in place. This can help prevent a data breach that would expose the personal data of your existing customers. However, you also need to be proactive about preventing people from making a purchase with a stolen credit card. Although this has traditionally been an almost impossible task for online merchants, Trulioo offers a proven solution.
What is Trulioo?
Trulioo is a startup that initially launched by offering identity verification for online dating sites and social media profiles. Within just a couple of years, they had become successful enough to acquire Global Data Company, which is an Australian company that provides ID verification. Trulioo now focuses on offering companies the ability to quickly verify the identity of their customers in order to drastically reduce their fraud risk. As a result of this switch, Trulioo won the European Digital Identity Innovation Award for 2015. Additionally, their services are being utilized by a long list of well-known online companies, including PayPal, eBay, Kickstarter and Square.
Trulioo has built a verification network that gives them access to information from more than 40 countries. This covers an astounding 3 billion people with one simple solution. When a consumer enters their credit card data into your online checkout, the Trulioo software begins looking for verification that they are who they claim to be. If there are any discrepancies found, the system can hold up the order and stop the credit card from being processed. When you consider the enormous financial cost that companies absorb every year as a result of credit card fraud, it definitely makes sense to use a one-stop solution to keep your business from wasting money and building a poor reputation.
Image credit Frankieleon/Flickr