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Anti-Fraud Measures for Your Site

Outsmart the bad guys with these anti-fraud tactics for your site.

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This story appears in the September 2006 issue of Entrepreneur. Subscribe »

Online rates might be going down--finally approaching the levels of brick-and-mortar stores--but fraudsters are getting more sophisticated. These were the key findings of the Merchant Risk Council's fifth annual survey released in April. The , , council consists of 7,500 merchants, vendors, financial institutions and law enforcement agencies.

Card-present fraudulent chargeback rates are usually less than 0.1 percent of sales, and 48 percent of the surveyed said their chargebacks match that rate--a significant improvement over 2004, when online fraud outpaced card-present fraud by as much as five times. "The numbers show a very positive trend, but fraud still requires vigilance from online retailers," says Julie Fergerson, board member of the Merchant Risk Council. Fergerson's fraud-prevention tips:

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