Complete Guide To E-commerce Fraud Protection

In today’s ambitious and convenience-focused society, instead of roaming here and there and venturing different streets and markets to buy items, customers desire to shop from their own homes. With the introduction of e-commerce sites, both marketers, as well as buyers, have gained a flexible solution. Now, startups businesses to the ones that are highly established can sell their own products or services from their personalized e-commerce website. If you are still on the fence about launching your own e-commerce store, then think no more. Just step into the technical domain and gain an ideal way that can take your brand from a traditional store to an innovative and well-loved brand. But beware of the e-commerce fraud, that is getting more and more prevalent these days. As an e-commerce seller, you must learn how to juggle between delivering high-quality data and apply for e-commerce fraud protection at the same time.

With an online presence, your business can explore a range of products without worrying about moving locations. The evolution in digitalization demands our daily life to be speedy and work on the go, through days and week. The end result is that nobody has the time to physically go shopping. More and more people are choosing to shop online as their need is to get a wider range of products through convenient experience. With the increase in approaches, the fraud rates are also increasing. Here, we are about to discuss, how business growth can face prohibition due to fraudulent activities.

How Business Growth is Hampered Due to E-commerce Fraud?

As your business grows it’s very likely that you are willing to extend your product range as well as your target audience. A professional e-commerce site lets you scale and develop your business for customer requirements and consumer demand.  Allowing to add more lines, more payment options are the perfect signs that your business is growing but alongside the enhancement of the e-commerce site, one of the most underlying facts is Cybersecurity. Without proper protocols in place, being an online retailer, you might put yourself and your customers at the risk of payment fraud.  

Records show that one in five business retailers, despite being well established, befall being the prey of credit card fraud every year. The most notable fact is that 60% of victim stores are forced to close within six months. Not only online retailers risk losing the leads but also they have to deal with the cost of repaying a high settlement charge. Data infringements can damage a brand’s reputation and the only way out to this is to apply the right tools that can minimize the threat of fraud and instil faith within your client’s base. Here, we are about to discuss the steps that can help gain a clear insight into e-commerce fraud protection. But before that, let’s take a look at the types of e-commerce fraudulent.

Types of Online Store Fraudulent:

Before advancing towards the way to minimize the risk and shield your e-commerce store from fraud. It is beneficial to understand common tactics that scammers employ in order to take over your running business. Online fraud can be broadly categorized into two categories, as Account takeover and Identity theft.

• Account Takeover: The perpetrators usually target personal information, financial data, purchase history through phishing schemes. The most common tactics are to send emails to the business owners and use tricks to make them reveal their usernames and passwords. Often with the help of bots, confidential credential information are obtained from the company’s database.
• Identity Theft: Fraudsters manage to hack into databases of the company and steal usernames, passwords, and other personal information from them. This type of e-commerce fraud gets difficult to detect as the credit card statements are not checked thoroughly.

Apart from those mentioned above, there are other types of frauds that generally get unnoticed due to the implementation of high ending technology in the theft. These include triangulation fraud, re-shipping, clean fraud etc.

Measures Taken Against E-commerce Fraud:

Being an online store owner what can you do to strengthen the websites’ security? What can boost safer credit card processing along with reliable data security? Every e-commerce platforms in order to mitigate any electronic commerce threats come along with an arsenal of built-in security features. However, you need to commit to extract the greatest value possible through these security tools.

It is indeed terrifying to imagine how online retail fraud tends to grow by 30% every year. You cannot stop the fraudsters, but you do stand a chance to fight them back. There are special services and tools that can prevent e-commerce against revenue losses. But when choosing an anti-fraud solution for your store, you need to learn what features you should look for while choosing an e-commerce fraud protection tool.

• Every system has some real-time insights that can detect fraudulent behaviour instantly. Whenever you decide to switch the machine, compare the manual reviews and get the one that provides more speed learning. At the same time has the capability to embraces a wider range of online fraud signals.
• A single interface is required to report on suspicious activities, the additional gain is that you do not have to switch between multiple screens.
• There are certain services which intend to provide full coverage and along with that, makes it a risk-free investment. Further, automated workflow speeds up the checking process for detecting fraudulent orders. Along with that, avail certain services which permits you to customize your fraud checks and the bonus is that there are certain data points to meet your personal requirements.

Best Modes to Bypass E-commerce Fraud:

Nobody knows your business as well as you do; the information regarding the biggest spenders and their buying pattern. It is time to take help of appreciable and highly recommended means that can prevent any ecommerce fraud.

An E-commerce Platform Needs a Multi-Layered Security

The best method to keep an e-commerce site safe from any fraudulent activities is to provide it multi-layered security.  An e-commerce platform needs multi-layered security and it can be provided multi-layer protection on an application-level. Monitoring the transaction rate through a comparative assessment of host providers can help to detect any suspicious activity. Deploying regular PCI scans and updates frequently help to check potential threats that may be targeting your e-store. Preventing new vulnerabilities through standard practice of auto-update can eliminate malware or virus intended to overtake your business.

Monitor All Transactions and Verify Payment Gateways System

Safer credit card processing is the mandate rule for preventing threats linked with the use of a billing and shipping address. Through an Address Verification System, detailed information of the credit card issuer can be obtained as it automatically separates the legitimate transactions from risky inputs. To make it more difficult for the processing a fraudulent transaction, keep CVV i.e Card Verification Value as the basic requirement. The hackers rely on algorithms to generate customers’ ID and passwords. If you implement strict password standards, which includes longer passwords with at least one special character, it can act as a more enhanced secured path for e-commerce fraud protection.

Tools Used to Combat E-commerce Fraud

With the increased risk of online fraud, there is also a high demand for designing tools that can ensure E-commerce fraud protection. ‘Simility’ can assess the risk of credit cards for both mobiles and desktops, based on their fingerprints. If you want a tool that can detect more than 20+ types of online thefts and that to automatically, then ‘Sunbo’ is your fraud protection friend. The comprehensive algorithms will help to analyze the system against 100 odd risk factors, along with a real-time tool called, ‘Riskified’. With ‘Sift Science’, you get alerts via email or as HTTP notifications, which can analyze 5,000+ data points at the same time.

It becomes a relaxing situation to resist malicious intents of fraudsters, with these fraud resistant tools. If you need more than just a tool then there is always an open option that can help you to switch to their premium plans. In the end, you can always rely on trained and dedicated professionals to fight against any such online fraudsters.

Winding Up

E-commerce sites help to overcome all sort of limitations like geographical barriers and that too through a lower cost of maintenance. Starting an online portal helps to understand the requirements of the clients and create a unique identity on the web. However, one must not compromise in the attributes, performance and also in the workflow of the site. Transforming the site into an easy quick interaction streamline trading processes requires not only eye-catchy visuals, intuitive navigation but also high-end cyber protection simultaneously. By implementing these e-commerce fraud protection tools, the sale of products and the services can be automatically enhanced.

Frequently Asked Questions on E-commerce Fraud Protection

1. What is meant by online fraud?

Online fraud attributes to all the fraudulent solicitations, transactions that are accompanied with the help of internet. It can surface through websites, chat rooms, e-mail, and even from message boards. Even pop up advertisements can form a part of scamming, that pose a risk of losing money. Huge chances are that a perpetrator can make purchases until the entire account gets drained out.

• How can I prevent credit card fraud on my website?

Whenever purchases are made as a ‘card not present’ transaction, one needs to look out for red flags that point out to a security deficit. You can also check whether the billing and shipping addresses differ. Also, you can take help of setup tools that match up the IP location and credit card address. The most important prevention is to watch out for suspicious email accounts and strengthen your website security measures.

• How can I report an e-commerce fraud?

If you want to report an online fraud then, at first, you have to identify the type of theft. It can be determined in the form of monetary loss or any unnoticed business practice. You can go to the governmental sites which are meant to lodge complaints against e-commerce policy violations and scams.

• How do I stop the fraudster and enable e-commerce fraud protection?

There are a few basic hacks that can be implemented to enable e-commerce fraud protection. Try to avoid emails, attachments, and links from unknown people as creating a fake Id to make emails appear legitimate is highly possible. You also need to dodge sharing personal or financial information in an email, text or over the phone. Finally, ensure that your system has an updated anti-virus software.