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Protecting Your Business from Identity Theft

Small business owners prevent identity theft in numerous ways while engaging in the operation and marketing endeavors that are required in today’s online world to achieve success. If you own and/or operate a business on the World Wide Web, it is imperative that you know how to prevent your business becoming subjected to the antics of cyber criminals. Not only will this measure assist in protecting the financial information, the information related to your employees, and the personal information pertaining to the customers that you service, but, it will also assist in helping you protect your online reputation – as a whole.

Protecting Yourself

It is a known fact that cyber criminals are consistently discovering new and innovative ways to defeat data security programs and fraud prevention measures as implemented by online retailers. By learning how small business owners prevent identity theft, you will achieve success in reducing the threats that you are subjected to each and every single minute of every single day as an online retailer.

The Problem

It is not at all uncommon to hear of cases where cyber criminals steal millions of credit card accounts in one hit, fraudulent transactions are perpetrated, or online retailer vulnerabilities are exploited. In some instances, these crimes are committed due to the fact that online business owners let their guard down. In other instances, the online criminals have hacked a business vulnerability that has allowed them access to otherwise secure information. Regardless of how data breaches occur, the outcome is still the same – as an online retailer, you risk the complication of your customers’ confidence being shaken and losing money. While these are major problems in of themselves, the main problem is that many businesses put a fraud and/or security system into place just once and expect it to perform proficiently forever more. Unfortunately, these systems must be evaluated, updated, and maintained on a regular basis. The ways that cyber criminals work to obtain data is constantly evolving. In addition to this, these individuals are learning new and innovative ways to exploit retailer weaknesses and utilizing technology in such a way that it allows them into an online business virtually unnoticed. Smart small business owners prevent identity theft by putting a fraud and security system into place and constantly monitoring and updating that system by staying up-to-date on the latest vulnerabilities, hacks, and breaches.

Evaluate Customer Behavior Patterns

One of the tactics that small business owners prevent identity theft is evaluating customer behavior patterns. This technique will allow you to stay ahead when it comes to risk management and will also help you to protect your online reputation. By analyzing consumer behavior patterns across the sales channels associated with your online retail store, you will be able to quickly identify various types of fraud patterns. In the past, many retailers utilized fraud detection techniques that used rules, such as fraud screens. While these techniques have proven effective, to a degree, in today’s world, it is best to opt for more sophisticated fraud detection techniques, that score a risk of cybercrime based on various types of analyzed behavioral attributes. Examples of these attributes may include a sending spending spike with a consumer, or a high purchasing velocity of a customer that typically exhibits a low purchasing velocity. The technology that is used to evaluate customer behavior patterns in order to assist in preventing identity theft and other types of retail fraud is referred to as “Neural Technology”. If you are interested in learning how to protect your online reputation and want to get in on some of the best tactics that small business owners prevent identity theft, you should opt for neural technology systems.

Tokenization Options

If you are interested in using the methods that small business owners prevent identity theft, you may want to become familiar with tokenization options. When it comes to identity theft, one of the biggest challenges faced by online retailers is protecting credit card information that is entered into their online server when consumers make a purchase. Cyber criminals are known to intercept credit card information once it is entered and is traveling back to the online store’s system to the processing unit and then back to the customer’s computer and/or virtual device. Many stores on the internet are now using a technique called “Tokenization” in order to diminish the overall value associated with consumer credit card information to the cybercriminal. This replaces the secure credit card information with a type of software “Token”, which has the ability to act as a type of proxy during a good portion of the payment process transaction. The credit card information is entered; it is then sent to your processor and decrypted. The information is then authorized via a secure bank connection. The acceptance or rejection is sent directly back to the purchasing consumer, along with a special token that may be utilized in the future, in the event of identity theft or another chargeback occurrence.

Essentially, a virtual token is created from a consumer’s unique credit card number and other personal identifying information. It is a type of substitute credit card number that is created by a special algorithmic code and key that creates a special map back to the consumer’s credit card number. While it is true that cyber criminals have the ability to break these codes and obtain the token number, there is absolutely no way – to date- that they have the ability to retrieve the original credit card number that was used during the tokenization process. In order to reduce identity theft at checkout, you should have a system in place that cross references the virtual token created to the original credit card holder. In short, be certain that the individual using the token at checkout is able to provide verifiable information that establishes the fact that they are, in fact, the legitimate owner of the virtual token. By using tokenization, you can protect your online reputation, prevent losses, and reduce the occurrences of identity theft.

Conclusion

As you can see, small business owners prevent identity theft in many unique and effective ways. Evaluating customer behavior patterns and utilizing tokenization are considered to be highly innovative and technological advanced methods of stopping cyber criminals in their tracks. If you own an online business, it is important to understand that you will be unable to protect your online reputation and secure information using 20th century tools and resources in the 21st century. You must consistently have a security and fraud prevention system in place that is constantly tracking, analyzing, evaluating, and preventing hacks and breaches in a fast and precise manner. In taking this step, you are sure to prevent a wide array of crimes and other complications that not only negatively impact your customers, but the reputation of your business – as a whole.