Running an eCommerce store is subject to risks and frauds. Although it can help you save a lot of money in the initial investment, you can fall prey to purchase fraud. Ecommerce stores have recently experienced a rise in fraudulent purchases. It is crucial to use the fraud management system to prevent your customers as well as business.
Ecommerce fraud can be any purchase made using a stolen credit card, a false identity, affiliate fraud advertising or any act that damages your business’s reputation. Note that any fraudulent attempt can affect your revenues too. One of the most common frauds is credit card information misuse after stealing it, known as card testing fraud. However, there are other types of frauds too.
The other types of frauds are friendly fraud, affiliate fraud, triangulation fraud, and interception fraud. Friendly fraud is on the rise nowadays. IT is also known as chargeback fraud. When a buyer requests a chargeback from the processor after buying an item and claims that the transaction was invalid, the card issuer company returns the amount to the buyer that later tacked the eCommerce retailer. This is called friendly fraud.
As the name suggests, affiliate fraud attempts to make you believe that you are popular in the audience coming to you and showing interest in your business that unfortunately does not exist. Affiliate fraud is prevalent, and it is the easiest way for scammers to make money by offering high traffic.
Interception fraud is done when a fraudster places the order using the billing information registered with the stolen card. Once the order is confirmed, they intercept the package to possess the item by changing the delivery address.
Triangulation fraud is very common frauds attempted at eCommerce stores. It involves three parties: a fraudster, shopper and eCommerce store to make it successful. An eCommerce store is created where high demand goods are sold at competitive prices. When people find such products at a good bargain, they place an order from where the scammers steal credit card information that they use to buy the product from your eCommerce store and send it to them.
You can easily prevent your eCommerce store from such fraudulent attempts with the help of the following actions:
Use fraud detection solutions
Before you invest in fraud detection solutions, you should also be wary when you receiver orders. Unusually large orders, multiple orders within a short period, and discrepancies between billing and shipping address are symptoms. If you are sceptical about any activity, you should immediately verify it. While it can be challenging for verifying all transactions, the software can identify fraudulent transactions whether it is friendly fraud, affiliate fraud or card testing fraud.
These solutions can help all types of eCommerce stores, regardless of their sizes. However, these solutions are ideal for eCommerce stores that do not have resources to implement their solution.
Take security precautions
One of the most authentic and effective ways to prevent your eCommerce from such fraudulent attempts is strengthening your security system. Make sure that you use at least essential security functions. It is crucial to have data of your customers like their billing address, name and other personal details safe and secure. Use PCI data security standards. This will help create a firewall between the internet and the system where you store all your data, including credit card numbers. This will protect the data from theft.
Blacklist as you detect a fraudulent attempt
It is good to use fraud detection software, but you should also notice each activity in your eCommerce store. Start noticing the activity of people who test credit cards. As you find such suspicious activities, you should immediately blacklist these people.
Make sure that you have a system that informs your users that their credit card is in use. If they did not use it, you could block the transaction and refund the money back to the cardholder. These useful parameters will build trust in your users.
Note that blacklisting such scammers is not a final solution because they can use new information to make such attempts. This can only alert you if the recent activity is done based on past behaviour.Running an eCommerce store is quite hard, especially when you have a responsibility to keep your users’ data safe amid the frauds. A rule of thumb says that you should ensure you are using enough protection tools to keep your users’ data from theft. You will need a certain amount of money to invest in such a tool. If you do not have enough savings, you can take out 24 hour loans in Ireland. If you are borrowing money, make sure that you will not fall behind the repayment
