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Lax security, complex payments leave SMBs open to fraud

Alex Scroxton

An increase in calls from members complaining about payment processing fraud has prompted the Forum of Private Business to warn that both insufficient security checks and complex payment systems are still leaving SMBs open to fraud.

Recognising that accepting card payments online is an increasingly important source of cashflow for SMBs, the FPB pointed out that too many small business owners had little or no experience of the contractual processes involved.

The FPB's advisor on merchant services, Richard Bradley, urged business owners to put processes in place that scrutinise orders.

"Minimising credit card fraud takes time but, above all all, it is important to acqurie an e-commerce payment gateway that is secure, using supplementary security modules provided by the major credit card companies," said Bradley.

These features request an additional password to be entered alongside the credit card details, which could serve to disrupt the activities of fraudsters who have only obtained a name, address and card number.

Bradley went on to explain that a large number of business owners didn't understand the processes involved in taking online payments, with many still apparently unaware that they can be made liable for the cost of the fraud when it is uncovered.

"Card fraud is a bit of a minefield, particularly with card not present (CNP) transactions. To combat it, merchants must first understand why and how fraudulent transactions take place," he said.


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