fbpx

Online Fraud Protection

If your dealership has an e-commerce site that is taking orders and perhaps even offering a “pick-up in store” option, you could also be at risk for fraud.

It sounds like a line on a piece of junk mail you may throw in the trash without even opening the envelope. But this topic is becoming a growing problem for retailers who sell online. If your dealership has an e-commerce site that is taking orders and perhaps even offering a “pick-up in store” option, you could also be at risk for fraud.

We recently participated in a webinar with Kount, a fraud protection company. Kount helps online businesses boost sales by reducing fraud and allowing them to accept more orders. CEO Brad Wiskirchen illustrates with the following example, “Let’s say you’re buying something from our customer, Staples.com. You click ‘place my order’, Staples takes your information, sends it to us, and in 250 to 350 milliseconds (faster than the blink of an eye) we tell them, ‘This is likely to be a fraudulent transaction.’”

Kount’s all-in-one SaaS platform is designed for merchants operating in card-not-present environments, simplifying fraud detection dramatically.

We also spoke to some dealers to gauge what is going on in the powersports world in terms of fraud, and some of the responses were surprising. Most of the dealers we spoke to said they’ve seen the number of chargebacks reduced because they are holding more orders for review. This takes time and energy and often times a dedicated staff to police the orders. One dealer said they had discovered nearly all of their GoPro orders were in fact fraudulent orders.

This dealer also said that early on when they first started their e-commerce site that they had a big order that turned out to be fraudulent, losing $5,000 on that one order.

Kount VP of Marketing Don Bush says that fraud related to EMV (chip cards) has increased in the U.S. because now it is moving online to card-not-present transactions. Fraudsters are finding plenty of tools online to buy stolen credit card information. Bush says that often times the retailer will have no idea the card is stolen or fake because all of the information appears correct. However, Kount is able to use complex systems to check databases against each transaction to raise possible red flags.

Bush says that there are some things that dealers can do to lower the risk by employing the following: Audit your current system on an annual basis; Outsource their fraud management; Look into your own data to determine normal behavior; Place multiple layers of technology in the way of fraudsters; Employ a data-driven solution; and consistent and ongoing staff training for fraud.

To download an e-book on the subject, go to: info.kount.com/ebooks/automotive-and-powersports-fraud-prevention-tune-up
You can also download the webinar here: http://info.kount.com/webinar/powersports-automotive-webinar.

You May Also Like

Nothing But Good Vibes at Santa Barbara Motorsports

Santa Barbara Motorsports is working to make every door swing count.

Santa Barbara Motorsports

What do you do if you are running a comparatively small dealership in a comparatively small town surrounded by larger cities with much bigger dealerships? How do you effectively compete with those mega dealerships? By offering a clubhouse atmosphere, reasonable deals and top-of-the-line customer service.

Just take Santa Barbara Motorsports as a perfect example. The town of Santa Barbara, California, is medium-sized, an hour and a half north of Los Angeles and right on the ocean. The weather is balmy most of the year, and there are good beaches. Wilderness starts east of the town, with many opportunities for both on and off-road riding.

To E-Bike or Not to E-Bike?

When it comes to e-bikes, it’s the wild, wild West out there.

Thoughts From AIMExpo 2024

Next year, go to AIMExpo. You’ll be glad you did.

People Are Dealers’ Biggest Asset: Top 10 Ways to Attract and Retain Them

Lessons learned in a 30-year powersports dealer career.

dealership employees
Do Yourself a Favor: Attend AIMExpo

What possible reason do you have to not attend?

Other Posts

Catering to Kids: Youth Off-Road Vehicles

Off-roading has become a hot family activity in recent years.

A child riding a youth ATV in a field.
How Motorcycle Windshields and Fairings Impact Riding Performance

Windshields and fairings aren’t just there to make the bike look good.

windshield, fairing, motorcycle
Put Your Butt on a Seat at Central Kentucky Motorsports

Drew Baldinger and his business partner, Brad Stinnett, were riders and enthusiasts when they decided to open their shop in 2012. Find out how the last 12 years have gone.

Being a Leader vs. a Boss: Keeping Your Dealership Team Intact

There are many reasons people leave a job, so how do you keep good employees at your dealership?

dealership employees