Thanks to the development of eCommerce, everything we want is at our fingertips, regardless if you want to buy artwork from a completely different part of the world, shoe polish from a shop that is around the corner or organize your holidays. Even though the development of eCommerce was unbelievable, they still had to step it up after the pandemic started and find a way to boost their sales and reach the largest number of people. Ecommerce has become an indispensable part of our lives, and we have never been more grateful. Unfortunately we are not the only ones that are grateful for the development of eCommerce.
Due to the nature of eCommerce business and their access to money, it is no wonder that it has also become a favourite target of cyber criminals. Cyber criminals have a way to find profit in even the smallest business or organization and they have a vast array of eCommerce frauds at their disposal. The way SEON explains eCommerce fraud is as any kind of malicious action that wants to exploit online stores, and unfortunately there is a large number of those actions cyber criminals can choose from. Learn more about the dangers your eCommerce is facing and how to protect it.
Statistical research by Financesonline shows us that eCommerce retailers are dealing with 206,000 web attacks per month on average and the number is growing constantly. Security needs to become the most important feature of any eCommerce website because without proper security they are putting not only their business but also their customers in danger. First step in any security procedure is to know what you are fighting against.
- Transaction Fraud - This type of fraud almost always results in chargeback. In short, a cyber criminal makes a purchase with a stolen credit card number, the real customer discovers a strange transaction and reports it to the bank. Bank then initiates the chargeback to the merchant. Damage done to the merchant is financial as they need to pay the fee to the card network, but also reputational as it can result in negative reviews and loss of the customers.
- Friendly Fraud - This type of fraud is anything but friendly, but it is called that as the actual fraud can be an honest mistake. In this type of fraud, chargeback is initiated by a customer who knowingly made a purchase but still disputed the charge. This can happen due to various reasons, like a customer trying to get a free product or because they became frustrated due to slow delivery or as the Europeanbusinessreview tells us, a merchant has unclear descriptors so the customer hasn’t recognized the payment.
- Triangulation Fraud - There are three involved parties when it comes to this type of fraud- the fraudster, the legitimate customer and the ecommerce store. Fraudster creates an online store, where a customer buys a product. He then collects a payment and customers personal details including credit card data which they use to buy that product from an ecommerce store. Once the customer notices unauthorized transactions they will initiate chargeback leaving the merchant without the product and without the money.
In order to protect your business, you need to create a proper security strategy. Even at Swindonlink some strategic ideas are in place to help boost your eCommerce performance. But despite all the tips we shared, no major eCommerce store is free from fraud or scams. You should use all the security tools at your disposal and create a safe environment for your business but also for your customers.
? Data enrichment: By using data from multiple sources you can enrich a single data point you have and create a profile of your customer. This tool is extremely useful when you want to confirm a customer's identity and make sure they are not a fraudster.
? Reverse social media lookup: This tool is indispensable when it comes to recognizing fraudsters before they manage to cause any serious damage. It checks users' social presence, which is not something cyber criminals can create for each stolen credit card number.
? Device fingerprinting: With this tool you can create a unique profile for each customer and flag any suspicious activity that doesn’t match customers profile or indicate if they are using the VPNs, proxies or emulators.
? Educating your employees: Reduce the risk by educating employees and providing them with proper tools. You need to have clear and simple policies in place and everyone in your business needs to understand the risks and how to follow the policies to protect themselves and the business.
In order to have a successful business, you need to start with happy customers. Them feeling safe is the first step in accomplishing that. Follow this guide and protect your business and your customer from any cyber dangers you might face.