Staying alert for any potential fraud on your on-demand app
Once you have created an online marketplace comprised of random buyers and sellers and buyers from every corner of the Internet, you simply can’t verify the integrity and intentions of every one of them. So build in as many safeguards as you can to identify potential fraud as quickly as possible, including the following.
- Build an algorithm to track the buying and selling patterns of your users and flags significant variances from those patterns similar to the credit card companies, Thereby flagging any unusual activity;
- Withhold delivery of funds for at least 48 hours after a buyer is charged for services to allow the credit card companies time to reach out to you if this transaction was fraudulent;
- Vet sellers before allowing them to join your community. Review their prospective profile and search their content or hire a third-party to perform background checks to ensure their profile data is accurate and they do not have any relevant criminal offences.
- Implement rating and review system to monitor the behaviour patterns and performance of your users.
- Do not allow your sellers to bill for their services until they have completed their delivery.
These are just a few ideas to help keep your community safe and to protect you from financial loss. Staying on top of security is paramount to the financial viability of your on-demand app; it won’t take too many losses to destroy it.
Finally, never forget the last line of defense – i.e. a good commercial insurance policy.
