The Rapid Rise of e-commerce Fraud

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Using stolen payment information for online transactions without the buyer’s knowledge is referred to as eCommerce fraudIt is easy for unscrupulous online stores to steal consumer data and later use it to defraud them. It has become quite easy for hackers to access one’s information due to the large amount of card information that is stored and transferred on an online payment portal. 

With everything going digital, fraudsters are becoming more enlightened with every passing year, innovative, and deriving new ways. They step up their game and find new ways to avoid the newly set barriers every time new measures to prevent fraud are taken.

Fraud is a fact of life and business. E-commerce has a higher level of vulnerability than other forms of industry. It is important to learn about the different types of e-commerce fraud and examine steps that you can take to protect yourself.  Different types of e-commerce fraud include:

If you own or operate an online store, you must protect yourself against fraudsters who can steal from you and your customers. Fraudsters can wreck your online reputation, alienate your customers, damage your brand, and hurt your profits.

E-commerce fraud can be spotted in several ways. The success of e-commerce fraud depends on the skill and ingenuity of the fraudsters. Common red flags consist of:

  • Multiple shipping addresses,
  • Many transactions in a short time frame,
  • Multiple orders from many credit cards,
  • Multiple declined transactions in a row, 
  • Strings of orders from a new country,
  • Inconsistent order data, 
  • Larger than average order, 
  • Unusual location.

Prevention is always better than cure. Taking preventative measures will reduce fraud risks. There are several different things that e-commerce retailers can do to reduce fraud. Firstly, retailers can check that company URLs are in the encrypted ‘HTTPS’ format to ensure that the information on their site remains confidential. Another safeguard is to update passwords regularly. When purchases are made, retailers can request Address Verification and Card Code Verification in their payment gateway to detect impersonators. It’s also important to set out clear policies concerning reshipping, refunds, and returns.

Some preventative measures include:

For more information about eCommerce fraud or CNP fraud contact a chargeback company

I am a young digital marketer and a blog analyst, Author from Uttarakhand, India. I have been into blogging since 2013 and helping businesses with their SEO requirements. I have 12 years of experience; during the journey, I have worked on many websites and made good friends. I research and share my knowledge with everyone to help them succeed as solopreneurs, businessmen, and entrepreneurs. You can also find me on LinkedIn and see my entire journey.