Maintaining security in the business sector has become very complicated in recent years. eCommerce fraud has caused several security issues both for businesses and individuals alike. As a business, it is important to safeguard your interests as a company. To learn more about the most common forms of eCommerce fraud and how to prevent them, review the information below:
While there are many types of eCommerce fraud to be aware of, consider these six most common forms of eCommerce fraud below:
- Identity Fraud
Identity Fraud is one of the most common types of fraud in the marketplace today. For this reason, there has been a great deal of investment in developing identity verification software and AI, for example, Netverify uses AI and compliant machine learning for identity verification. Consider Identity Fraud solutions in your organization and keep yourself up-to-date with the advances that could make your business more secure.
- Clean Fraud
Clean Fraud occurs when criminals use a smaller purchase to test the card passing through fraud preventative software. If you see a bizarre small test purchase, verify that it was legitimate in order to be sure that it is not Clean Fraud.
- Affiliate Fraud
Affiliate Fraud is targeted for obtaining more money by manipulating sign up statistics. This can occur by many individuals signing in with false credentials or by having automated sign ins to boost figures. When seeing a substantial spike in sign-ups that feels unnatural, it is right to question it to be sure that it is not Affiliate Fraud.
- Refund Fraud
Refund Fraud occurs when a fraudster that is using a stolen credit card will make an overpayment on a specific purchase. The fraudster will then contact the business and request the money returned to them with a different payment method. This leaves the credit card owner with a large charge and no refund for the amount that was spent.
- Phishing
Phishing is an email form of fraud that tries to elicit personal confidential information from individuals receiving the email. The emails appear very convincing, which is why it is important to educate your staff on how to recognize them to avoid giving out confidential information.
- Sales Through Third Party Websites
Sales through third-party websites are susceptible to fraud. The reason for this is that transferring of information to more than one place makes it more susceptible to hackers. It is best to have your staff pay for items directly from merchants that don’t use third-party payment systems. Additionally, it is best to set up your business payments through a direct method to avoid accepting payments from third-party payment methods.
Conclusion
eCommerce has opened up the doors to many new kinds of fraud. This area of fraud is evolving continuously because as technology gets more advanced, so do the fraudsters. It is important to keep up-to-date about the present risks and to invest in educating your staff on them to protect your business in the long term.
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