As our world becomes increasingly more digital, it opens up exciting new ways for brands to interact with customers. And from mobile apps to online ordering, the younger generations are coming to expect these convenient services. But as restaurants rush into these new services, many are encountering the dark side of the digital world — online fraud.
The restaurant industry is no strange to fraud or theft – 75% of employees have admitted to stealing at least once from their employer costing businesses between $3 and $6 billion dollars annually. But with the move into online ordering, restaurants and food delivery services face a new line of attack in the form of online payment fraud. Forter’s 2018 Fraud Attack Index reports that overall fraud rates have risen by 13% since last year.
With an rise in opportunists willing to take advantage, restaurants must take ample precautions to protect themselves and their customers from falling victim. Here are a few preventive measures that can help prevent attacks:
- Use an EMV reader: Banks are phasing out magnetic stripe cards in favor of more secure, authenticated ways to pay i.e. EMV or more commonly known to you and I as, chip cards. EMV, was designed to prevent fraudulent transactions that take place when someone physically swipes a counterfeit card at a payment terminal.
While slim margins make it difficult for some restaurants to implement this technology, fewer security measures make it easier for people to use stolen cards and commit “friendly fraud.” This occurs when scammers contest charges made with authentic EMV cards at restaurants that do not have EMV readers. According to chargebacks911, 86% of all chargebacks are fraudulent. On the flip side, in countries that have adopted EMV as the standard, certain types of credit card fraud have dramatically declined.
- Ensure your mobile app integrates with your POS system: When it comes to mobile payments, they need to be convenient, so buyers can make the transaction from whichever device they’re on but it also needs to be trustworthy, so they don’t have to worry about fraud. By integrating your mobile app with your POS system, not only does the ease of use increase both employee performance and customer satisfaction but also makes payments safer. That means you can safely let customers pay with their phone and purchase/reload gift cards with the app.
- Become PCI Compliant: PCI compliance is the first line of defense for your online store. Just as when you have a credit card machine of any kind, you need to ensure your systems are fully compliant with PCI standards. PCI compliance is a set of standards for all merchants who process credit or debit card transactions, no matter how big or small they may be. By ensuring PCI compliance, you protect customers’ personal card data from potential breaches and downtime, while also reassuring them that your restaurant is a trustworthy establishment.
Ensuring that you have a solid secure line of defense in place will not only help protect you and your customers but also keep your business profitable and trustworthy.