With the arrival of Carnival in March, the volume of online and physical financial transactions using contactless credit/debit cards and Pix increases, raising the risk of fraud and scams. Among the most common situations for businesses and consumers are card cloning, fraudulent bank transactions involving online data theft, and fake websites.
According to Monisi Costa, Director of Payments & Banking at Vindi, “protection measures are fundamental for both companies and customers. In both online and physical transactions, it is essential to be extra careful to avoid sharing data on fake websites or making contactless payments without consent.”
The expert from Vindi, LWSA's financial solutions hub, has compiled 12 essential tips for businesses to protect their e-commerce sites and for consumers to protect themselves against fraud.
Businesses: protection for e-commerce and customers
- Utilize an anti-fraud system : careful investment in security is essential. Use solutions with artificial intelligence to analyze purchasing behavior and identify suspicious transactions.
- Obtain security certifications: certificates like SSL are important for encrypting customer data, thus protecting it. Additionally, websites with "https" are more trustworthy and convey security to the consumer.
- Avoid redirecting payments: have a simple and secure checkout process, avoiding redirects that can expose customers to fake websites. Transparent checkout, for example, allows the purchase to be completed in the same environment, making it more secure.
- Monitor transactions: real-time monitoring is essential to identify potential fraud such as purchases with unusual patterns, like multiple consecutive purchases of high value or orders coming from suspicious IP addresses.
- Payment and return policies: your e-commerce site needs to maintain an easily accessible page with clear information about exchange, return, and order cancellation policies for customers. This way, you avoid disputes and strengthen customer trust.
- Comply with security standards: it is essential that your e-commerce business follows security regulations such as PCI-DSS, as this ensures the protection of customers' financial data and avoids penalties and reputational risks to your company.
Consumers: avoid scams and fraud.
For consumers who will be enjoying Carnival in the streets or in enclosed spaces, it is necessary to take extra precautions with wallets and cell phones in order to avoid theft and misuse of their cards and cell phones for payments and transfers.
- Be careful on the street: avoid using your cell phone and carrying multiple payment methods during street parties. Check receipts and amounts charged when making payments with card machines, and be wary of fraudulent contactless payments using your phone or card. One possibility is to disable this payment option.
- Theft/Loss: In case of theft or loss of cards and cell phones, contact your bank and cell phone operator and block everything immediately, in addition to filing a police report.
- If you're buying online: research the store's reputation, check if the company has a CNPJ (Brazilian business registration number) and customer service channels. Be wary of very attractive and advantageous offers with products at prices far below market value. It's also worth checking complaints on websites like Reclame Aqui (Brazilian consumer complaint website).
- Passwords and access: using strong passwords, locking your phone and apps, having two-factor authentication, and other security measures can prevent misuse of your phone and apps, as well as password changes by third parties in possession of your phone.
- Secure networks, websites, and links: avoid making purchases and transfers via Pix (Brazil's instant payment system) using public Wi-Fi networks, and always use devices with up-to-date antivirus software. Verify that the website or link you are about to access is secure before entering financial information. Websites with an "https" domain and Security Seals are more trustworthy.
Keep receipts and track transactions : saving or printing receipts for online purchases is essential, especially if there are any problems later. In addition to keeping these receipts, monitor your bank transactions after making online purchases to detect any possible unauthorized charges.
