3 Ways E-commerce Business can avoid Online Frauds
The e-commerce industry is one of the leading online industries of this period. If on one hand online shopping has proved to be a great facility for the customers, it has also attracted the attention of many fraudsters and hackers on the other hand.
More than 50% of the e-commerce businesses fall victim to online frauds and chargebacks every year. The online frauds not only compromise with the company’s profit and reputation but also put the customers’ data at stake. It is necessary to take preventive steps to defend the business against online fraud. Here’s how can they do it:
Look-out for Red Flags:
No one can know the business better than the business owner. Keeping the track of the customers from day one is something that the business owner does. Doing so proves to be beneficial as he/she can easily identify the fraudulent purchase on the basis of following key flags:
- Unusual purchase behavior
- Different shipping details
- Mismatch of IP address from the customer’s actual location
- Login through free and different email addresses etc.
There can be hundreds of transactions per day, and going through all of them manually isn’t the best approach towards fraud detection. It is better to automate this process with the help of different tools. The system can be instructed to issue a warning or in some cases decline the transactions so that the purchase can be verified before the shipment of the order.
Sometimes, the criminals don’t fraud with someone’s else identity, instead, they take a different approach called “Brute Force” using which they flood the e-commerce site with unusual and heavy traffic from different sources. The heavy traffic load makes a website crash, therefore, cutting off the services to the actual customers of the business. Such attacks are known as distributed denial of service (DDoS) attacks and they have a direct impact on the revenue of the business.
DDoS attacks are done because of two reasons:
- To Lookout for vulnerabilities in the system.
- To demand Ransome in return of stopping the attack.
In both cases, there is a huge loss for the business. E-commerce business needs to get DDoS protection in order to detect and terminate the attack before it could cause any harm to the business. Many web hosters provide these protection services to their customers.
Address Verification of Customers:
One of the most common e-commerce fraud includes purchase using someone else’s credit card. These types of frauds result in chargebacks and sometimes also discourage the credit card banks to carry-on venture with you. The important aspect of avoiding these types of fraud is to be assured of the customers’ identity. In this regard, Shufti Pro’s Address Verification servicesare best to use.
These services match the address of the customer billing address to the one that the credit card company has registered in a file of the customer. Using the address verification system is one strong safeguard against protecting identity theft fraud.
There can be multiple reasons (for example, negligence of the employees or the lack of proper security checks) that can lead to online fraud in the e-commerce business. In order to retain a secure customer base, the e-commerce business owners need to step ahead and follow the latest technology service and policies to protect different types of online fraud.