Online shopping is that invention that allows you to sell and buy what you want from the comfort of your home. You no longer need to travel from multiple stores to find the right products for you. Over time, the e-commerce boom has certainly changed and hence you need to be very careful with your personal details. There are several cases of fraud that you are likely to deal with.
Despite the efforts of these eCommerce sites to deal and reduce these types of frauds, the cases still remain high. There are several problems that people are facing right away. Most of people like to shop at websites that offer convenience and easy to browse. If the website is not optimized well then you may incur some of the costs or even end up conned. There are some of the frauds that online retail sites have to watch out for. These are some of the threats that target your business. Here are some of those frauds.
Credit card fraud
This is the most common type of fraud which happens when fraudsters make online shopping using stolen credit card information. In most of the cases, they will only use the details but there are some other cases when they can be in physical possession of the credit cards. They usually gain this information electronically from online shoppers. Once the information has been used and the transaction completed, the business will be responsible for ensuring that the customer gets what they need.
When the card owner notices that the money is got from their cards, they may seek reimbursement to the company totaling to the same amount of payment. On the side of the buyer, you should make sure that your card information is safe and secure. If the information is not secured well, you may end up losing money. When you are about to complete the payment while purchasing online, make sure you have shared your credit card details with a company that is locked.
First and foremost, make sure you check whether the URL has https instead of http. The URL should as well feature an icon that looks like a padlock.
Refund Fraud
This type of fraud usually lands on the side of the retailer. This happens when a fraudster uses a stolen card to make an overpayment on purpose. After that, he/she will contact the seller to signal an accidental overpayment and later ask for a reimbursement. In this case, the fraudster will ask for the refund of the excess money which may be a cost to the company. They may as well claim that their card is closed and hence the refund should be sent to a whole different credit card. In case the original owner of the card realizes, the company will be responsible for the full refund.
Merchant fraud
The market is responsible for the seller and the buyer. In this case, the fraudster may sell and receive payment for an item that doesn’t exist. The business will now be responsible for this case and they may be referred for a refund.
Card Testing
This happens during the practice of creating and testing the validity of a credit card. The card may be used on another website. In this case, the fraudster will target websites that give a different response for each type of decline. A good example is when the card is rejected when the operation dates are over. When the card has expired, some websites will give a different approach. The fraudster knows that they just need to check on the expiry date and everything else will be okay.
Chargeback fraud
This type of fraud is also known as friendly fraud and it occurs when a consumer makes an online purchase and later claims that the credit card was stolen. They will raise an issue and ask for chargeback after they have received the purchased goods and items. This is a kind of friendly fraud and the company will be left to incur the cost.
Phishing
Phishing will occur when an email asks for user id, password and credit card details, and several other Personal information. The company that just wants some changes on the case is likely to ask for this information without your knowledge.
How to detect these frauds and prevent them
If you want your customers to be fully protected from any type of e-Commerce fraud, then you need to be very active in detecting these types of fraud and at the same time do something to reduce the instances of fraud through the site. At this point in time, we will talk about some of the tips that you can implement and prevent these frauds.
Adhere to PCI standards
Adhere to the Payment Card Industry which has security standards for every online store. Their standards will go an extra mile to make your transactions more secure.
Use the Address Verification system
This is an existing tool that helps you secure your business. It verifies that the customer billing address matches the ones that are included in the credit card. This means no one else can make the transaction without their consent.
Set tight password Requirements
We already know how much strong passwords can help. For this reason, set a tight password which will make sure your business is protected the right way.
Never share individual information
This works well for both the seller and the buyer. You have to make sure that your personal information is secure and not shared anyhow. As a matter of fact, if your personal information lands on the wrong hands, then you may lose a lot.
Look for red flags
Lastly, there are certain red flags that a purchase might be fraudulent. It’s also a concern to the buyer. If you detect the buyer is so fast and wants the transaction to be completed fast enough, then you must be very careful.