How to effectively prevent fraud transactions as a UK merchant

Cross-border payments, Fintech, Fraud transactions, GlobePay

by GlobePay

4th July 2024

In today’s digital payment environment, merchants need to remain highly vigilant against potential fraud transactions. Recently, fraudsters have been exploiting merchants’ payment channels for fraudulent activities, which significantly impacts both merchants and consumers. As a payment company regulated by the FCA, we aim to help merchants enhance their awareness and ensure transaction security. Here are several crucial recommendations.

Preventive Measures for Multi-Tier Agent Sales Models

If your merchant system involves multiple tiers of agents, ensure that you can contact the actual payer. Fraudsters may use complex agent chains to conceal their true identity and intentions. Therefore, maintaining good communication and transparency with each level of agents, especially for high-value transactions, is crucial.

Enhancing Transaction Monitoring for Online Platforms

For merchants linking payment methods to websites, mini-programs, or other online platforms, we recommend enhancing transaction monitoring. Implement real-time transaction monitoring, set up alerts for abnormal transactions, and promptly identify and prevent suspicious activities. This not only protects your business from losses but also increases consumer trust.

Utilising Big Data for Transaction Analysis

By leveraging big data analysis, merchants can better identify and prevent fraudulent transactions. Here are some specific suggestions:

Identifying Anomalous Patterns: Use big data to analyze transaction behaviour and identify anomalous patterns, such as sudden increases in transaction frequency or abnormal transaction amounts.
Geolocation Analysis: Analyze the geographic location of transactions to identify unusual locations and take timely action.
Device Fingerprinting Technology: Use device fingerprinting technology to track and identify suspicious devices, preventing repeated use of the same device for fraudulent transactions.

GlobePay is committed to providing secure and reliable payment services for merchants. Please contact our customer support team if you have any questions or need further assistance.