The eCommerce industry is a constantly evolving sector with many exciting developments taking place all the time. Especially today, consumer demands have never been greater. They look forward to more customization options, quicker satisfaction, and fewer actions to fulfill at the checkout. As an entrepreneur, adapting to these changes are essential to provide fast and efficient consumer experiences.
Unfortunately, when there are great possibilities, there are also those attempting to take advantage. Digital thieves, also known as cybercriminals, are now evolving to create more methods to exploit the growth of eCommerce platforms and the continuous increase in consumer transactions.
Online Fraud in eCommerce
Businesses are unconsciously becoming more susceptible to cybercrimes by matching consumer demands. Providing a fully automated shopping experience is impairing the chance to identify and prevent fraudulent transactions.
While entrepreneurs are currently dealing with well-known eCommerce fraud such as refund hacking, security breaches, and data theft, companies should be aware of many new and emerging types of fraud.
Tools to Protect your Business
Fraud does not just occur at the moment of purchase. It is happening across the whole transaction process. Every time an eCommerce platform and a consumer interact, there is a potential for fraudulent behavior.
Luckily, with the right tools at hand, you can keep your online security afloat. Here are some ways that you can protect your platform against the wrong hands.
Consumer Details
Registering an account at an eCommerce marketplace allows customers to have a smoother and customized shopping experience, including access to exclusive deals and a route to reward programs. However, it is also a potential source of identity theft.
Entrepreneurs find it especially difficult to fight stolen identities. Some fraudsters clone several websites and pretend to be the original ones, thus phishing any information from people who try to make a transaction.
Information Verification
Instead of trying to steal another person’s identity, some scammers generate a completely new fictitious persona using various fraudulent details and genuine personal information. Equipped with a fake identity and good credit record, many of these frauds buy online and would then vanish, leaving trails of unpaid bills behind.
So, information safety is becoming a significant factor when it comes to online shopping. Many websites require face verification along with consumer details when going through an identity confirmation process. This way, you can obtain face information of the clients that will transact on your pages.
Data Archiving
Archiving digital content and data retention are critical for safeguarding customer and business information. It is one of the essential elements in maintaining and preserving business integrity. So following record-keeping rules guarantees fair and honest markets for people, businesses, and the industry as a whole.
Payment Authorization
Money launderers take full advantage of this crucial touchpoint. Credit card fraud occurs when criminals acquire stolen account numbers via theft or purchase on the black market. They might not even be aware that the credit card information is genuine, which is why they use bots to test hundreds of credit card information on minor transactions rapidly.
That’s why setting up payment authorization channels will be a great help to prevent unauthorized purchases on your platform.
Returns Policy
A client return policy has a massive influence on a shopper’s willingness to buy. And it is precisely because of this functionality that returns have become a new target for scammers. Return fraud occurs when a scam artist takes advantage of a seller’s return policy.
We often see individual return frauds. But, organized criminal groups do more heinous types of return fraud. The most common strategy happens when an item is returned to the store without a receipt. In return, the store exchanges the product with a gift card or a merchandise credit. These cards can be subsequently sold for cash to companies, individuals, or third-party gift card merchants.
Establishing a “no return, no exchange” policy cannot harm your business, especially if you follow a standard in packaging. Furthermore, documenting the process before shipping and delivery will add to the quality expectations.
Taking One Step Ahead
If eCommerce fraud happens at any sales process engagements, the key is to identify it early on before any harm is done.
Furthermore, companies can identify fraudulent behavior throughout the buying process by introducing innovative fraud protection systems driven by machine learning techniques. It means you are in control of the whole transaction and not only at the moment of purchase.
Thanks to these services, you can stay one step ahead and remain at the top of your game.