Fighting E-Commerce Fraud
E-commerce fraud has grown dramatically as the industry has exploded. Many companies and individuals do not have the controls in place to protect against those who attempt to exploit their vulnerabilities. Here are a few examples of e-commerce fraud and preventative measures you might want to consider:
Phishing is an area where the elderly are, especially susceptible. Fraudsters send emails or build websites mimicking legitimate businesses to coerce users into revealing their personal information, such as login credentials or credit card details. Implementing two-factor authentication is an excellent prevention tool along with using email filters and security tools to block these attempts.
Criminals are purchasing stolen credit card information to make online purchases. Your company should consider implementing an Address Verification System (AVS) to verify the billing address is the same as the cardholder. Implementing fraud detection tools that analyze transaction patterns and identify suspicious activities worthy of review is also a good practice.
Fraudsters are creating fake online stores or websites to collect payment information without delivering the promised products. Always research and verify the legitimacy of online merchants before making purchases and use reputable payment gateways that offer buyer protection.
Customers purchase using a credit card and later dispute the charge, falsely claiming that they did not receive the product or service. To prevent this type of chargeback fraud maintain detailed transaction records and shipping/tracking information and document refund and return policies.
Preventing e-commerce fraud is challenging in today’s environment. It requires a multi-layered approach, combining technological solutions, user education, and vigilant monitoring of transactions and user behavior. Businesses and individuals need to stay updated on the latest fraud trends and employ proactive measures to safeguard their information and financial well-being.