How to Detect and Prevent Fraud in eCommerce Business?
As eCommerce is getting popular, the fraudsters’ interest increase. What kind of fraud and how to take prevent fraud is what we talk about.
Who is targeted?
Stores that offer payment by credit cards and pre-paid gift cards are being targeted. Fifty percent (50%) of small eCommerce businesses will face fraud eventually.
What are the types of fraud in eCommerce?
The cybercriminal pretends to be an eCommerce company and gets personal information from the customer. Purchases made through the credit card numbers and other information acquired through this theft can cause chargebacks from the eCommerce stores.
Here, the customer makes a purchase, but for some reason (maybe too many charges or a lot of time elapsed) they forget about the purchase and request the payment processor or the merchant for a chargeback.
This fraud is a bit like hacking. Once the customer tries to make an order on a store, they may contact the owner via email and share personal and payment details there.
Somehow, a third, uninvited person intercepts this email and steals this personal information, with both parties unaware that details have been compromised.
Data hacking, stealing of mobiles and tablets, and using malware are ways data is stolen. This data is then used to make fraudulent purchases. eCommerce businesses end up having to face multiple chargebacks and face huge losses.
How to stay safe from eCommerce fraud?
- Make sure your fraud prevention system is updated. There are many useful tools available in the market.
- An eCommerce fraud prevention system that uses both human and AI resources is best.
- An address verification system is highly recommended. The address of the person claiming to own the credit card is verified against the credit card address.
- Since email fraud is very common, a good email authentication system is a must.
- Device assessment is also a useful way to identify actual human interaction from a bot or fake interactions.
Tools for eCommerce fraud protection:
There are many tools available that assist with eCommerce fraud prevention, detection, and protection. Consider the following for your store:
Subuno offers customization, chargeback guarantee, and an insights dashboard. It supports Shopify, Magento, and WooCommerce and many others.
Bolt takes care of all aspects of your eCommerce needs. It gives you 100% protection against chargebacks and fraud.
Simility is card fraud detector that works for both mobile devices and desktops. It uses the latest technology in device fingerprinting to detect fraud.