Do you know that e-commerce fraud is on a nearly 30% rise in the current scenario? Each year scammers are putting a big dent in the revenue of shopping sites by adopting a few fraudulent tactics. And you might get shocked to know that these e-commerce sites are not just incurring a massive financial loss on the online platform but also failing to maintain an immaculate reputation among their existing and non-existing customers.
Due to this, they have got trapped in a hard row to hoe, making it difficult for their business to survive longer. But do you know what the good news is? Ecommerce fraud prevention techniques are also on the rise preventing millions of customers from getting duped and thousands of shopping sites from making a colossal economic loss.
So, all you need to stop losing your hard-earned money to cunning fraudsters is to partner with an excellent e-commerce fraud prevention company.
Now the first question that might have come to your mind is how an e-commerce fraud prevention company can prevent you from getting scammed, right? So, to answer your question in the best possible way, we must say that fraud prevention firms provide you with a wide range of solutions to prevent malicious actors from making fraudulent transactions on your website.
Their fraud prevention solutions make your business pass through three crucial phases, i.e., Risk Assessment, Analysis, and Reporting. Throughout this journey, they identify potential threats to your business and helps you fix the problem before it occurs.
Some of their popular and result-oriented products are Digital Identity Verification, Chargeback Management, SCA or Strong Customer Authentication, Device Intelligence, and Payment Gateway Safety.
Out of all these, most e-commerce site owners avail of SCA Optimization services as it allows them to identify real customers before they place an order. Doing so helps them prevent fraudsters from making unauthorized purchases on their site and earn the higher trust of their potential customers down the line.
So, now that you know how an e-commerce fraud prevention company prevents fraudsters from eating into your profits, it’s time to look into four worst scams that shopping sites come across:
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1. Identity Theft
Identity Theft is one of the most common frauds where malicious actors somehow acquire the customers’ credit card or bank account information and make purchases on various shopping sites. Your customers may unintentionally reveal their account information to fraudsters by replying to their phishing emails looking like the one sent from the original vendor regarding the product they have ordered.
In the email, they ask for confidential information from customers, and the moment they share it, they lose control of their monetary balance.
2. Chargeback Fraud
Chargeback Fraud is another common scam in which a customer buys expensive products from a shopping site in bulk and then cancels the order after it gets shipped. So, once the order comes to their doorstep, they happily receive it without paying a single penny.
Then the consumer calls the credit card issuer and informs them that someone has made a fraudulent transaction with their card and was unaware of it. In that case, the bank that has issued them a credit card refunds the transaction amount given that someone has stolen their identity.
3. Triangulation fraud
Just to let you know, the scammers with a few advanced techniques perform Triangulation Fraud. How? They first create a fake listing for a genuine product on any famous shopping site, which allows them to post and sell items without verification.
In that case, they price their product a bit more than its average price and then wait for customers to place orders. Once a customer has ordered their product, they get all their personal information.
Then, they buy the same item from a different site and ask the seller to ship that product to the customer’s address by providing them with the essential details they have collected. Thus, the customer receives their goods without knowing that they have overpaid for them, and the scammer keeps the extra profit with themselves.
4. Email Account Phishing
The fraudsters who practice Email Account Phishing scams send a myriad of malicious emails to scores of people, asking them to confirm their order or delivery. In the process, they ask the recipients to share their sensitive account information, which they should not. And when customers share their confidential data by mistake, their monetary assets come into the scammer’s control, and then they make multiple unauthorized transactions using that.
We hope you know about four common scams that e-commerce sites come across and how an e-commerce fraud prevention organization can help you get rid of them. So, if you want to leverage the shopping-site fraud prevention services, have a word with the state-of-the-art fraud prevention enterprises out there.
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