As the Coronavirus has impacted how consumers participate in commerce, many businesses are shifting their day-to-day card processing methods to telephone orders and e-commerce processing. SMS Payments Providers are at the forefront of this shift, allowing customers to pay for services or goods via a mobile phone text message. 

 Almost any business that takes payments for goods or services can realize operational costs savings and an uptick in collected revenues by choosing to accept payments by text message. The customer typically receives a text prompting them to initiate payment via a website interface or additional text messaging.

 So it's important for you to understand the vulnerabilities associated with these card-not-present transaction types.

 Cyber criminals are well aware that the COVID-19 pandemic is an all too easy way to grab the attention of an unsuspecting consumer and initiate a phishing attack. A “phishing” attack occurs when a fraudster sends an email pretending to be a legitimate source in need of a consumer’s sensitive information (e.g. passwords,credit card numbers, social security number, etc.)

 One scam in particular has been exacerbated by the market effects of COVID-19: Buy Online Pickup in Store (BOPIS) fraud. The BOPIS model makes sense for many businesses as a response to social distancing measures, and consumers are growing to prefer the model’s convenience. Customers save time waiting for goods to be delivered to their homes, and are able to practice social distancing.

 However, businesses should be wary of BOPIS fraud, as fraudsters are using stolen credit cards/account details to order items online, knowing that many stores require minimal proof of purchase for BOPIS pickups.

 Basic fraud detection programs examine the relationship between data points such as a buyer’s delivery address information in combination with a computer’s IP address in order to detect potential fraudulent activity. BOPIS fraud occurs outside of these standard digital fraud prevention measures. Customer service is the cornerstone of the BOPIS model, and a quick, streamlined customer experience is expected. Unfortunately, this means that there is not much time to detect fraud. 

 The average retail employee is not qualified to deal with fraudsters and scammers, particularly when said employee is focused strictly on giving potential customers the best, most streamlined buying experience. Ideally businesses prevent BOPIS fraud before the physical point of sale by investing in digital fraud prevention technologies.  

 The COVID-19 pandemic has threatened the livelihood of many types of businesses, and it can be easy to overlook potential fraudulent activity amongst all the uncertainty. As a response, businesses must remain vigilant, educate employees, and invest in fraud prevention.


Author's Bio: 

Kim Smith enjoys exploring the entertainment world with her thoughts and opinions on selfgrowth