Fraud is common in e-commerce. In this case, any level of business can become a victim of fraudsters. It can be a small online business with a small turnover or a network with huge data. As e-commerce technology advances, scammers are also improving their skills and knowledge. They are inventing more and more new ways to hack and gain access to personal data.
It's hard to give an exact figure for the volume of e-commerce fraud. It's important to stay alert and remember the following tips on how to protect yourself from fraud.
How to Prevent Fraud?
One of the important rules of protection is that you should always remember that you are in the risk zone. Studies show that since 2015, the number of fraudulent actions in e-commerce has increased several times. Keep in mind that there is no way to stop this phenomenon completely.
Fraudulent actions and attacks from outside can not only cause material damage. Your business' reputation can also suffer or your brand image can be damaged. Given this and other factors, online business owners should have methods on hand to protect themselves from online detractors. Is it possible to prevent this and how? We will look for answers to this question next.
As mentioned above, at the current rate of technology development, it is almost impossible to stop fraudulent actions. Only knowing about principles how they work can help to prevent unpleasant stories. The largest number of fraudulent transactions are conducted using credit cards. The victims of such actions are cardholders.
When manipulating credit cards, typical operations are unauthorized transactions, false refund requests, using services without payment, etc. Scammers do everything possible to benefit themselves.
The difficulty in the fight against fraud lies in the specificity of the Internet: here everyone can hide his true name and data. There are plenty of opportunities to act anonymously. All payments in online commerce are made without the personal presence of the parties. All transactions are made only with the help of credentials in a particular system. And it is not difficult for fraudsters to steal these data. If adequate protection is put in place, then there is a chance to secure your business.
One of the unpleasant consequences of fraudulent attacks on e-business is that it can lead to a loss of customer loyalty and trust. To avoid such consequences, it is helpful to have your strategy to protect yourself from fraudulent actions. It is also important to pay attention to the choice of payment providers. Payment providers should also be concerned about the safety of their customers.
Data analysis services have been used for years to detect fraud. However, it is a lengthy process that requires the involvement of specialists in areas such as law, finance, economics and technology. Fraudsters can act on standard systems or invent new ways to attack. Thanks to advances in artificial intelligence, the process of data analysis are now somewhat improved.
Finding and detecting fraud consists of several stages. The first stage looks at ways to prevent it. This is a set of works on business risk management. When fraud is already present, the back office gets involved in the process. The final stage involves analyzing the data and identifying risks for new attacks, as well as identifying methods of fraud.
As far as methods of fraud are concerned, there are also many. Usually, they are data mining, time series analysis, statistical data calculation and matching algorithms to detect similarities.
Fraud detection methods
One favorable factor in the growth of fraud is the increase in the number of credit cards. Scammers in this area are making a huge amount of money. To prevent such actions against your business or personal money, there are several things you need to do. This will help to reduce the risks to your data.
- Monitoring. If you receive an order for the delivery of an item, it is important to carefully check the recipient's information. Pay attention to the delivery address. It must match the address from which it is billed. If the address is questionable, you have the right to cancel the delivery of the order. As an option to check, you can ask the issuing bank to contact the customer. Scammers often use fake addresses and phone numbers that don't match the credit card holder's phone number.
- Pay attention to the IP address. If the IP address is outside your country, look closely at that order. But not all cases are fraudulent. The right way to check is to contact the customer and see if he ordered the delivery or not.
- Recurring transactions. These can be regular delivery or service transactions for which the same credit card is used to pay. Checking and verifying data is normal for business. By doing so, you protect and keep the genuine customers of your business safe.
- Obtain a signature upon delivery. Have every customer sign for it after receiving their order.
- International orders. When sending a delivery to another country, it is highly recommended that you verify each order. This is especially true for countries in Africa and Asia. Often cheaters live in these parts.
- Pay attention to the time of the order. No doubt, e-commerce works without breaks and weekends. But we recommend you carefully check the orders made late at night or early in the morning. These times are predominantly considered fraudulent transaction times. They also often choose express delivery. You should be on the lookout for such orders as well. Another distinguishing feature is expensive orders and large volumes. They simply don't care about the cost of the goods.
- Check email addresses. If the address consists of strange words, it is a cause for concern. Very often in practice, the address of the genuine buyer is the same as his name. As an alternative, scammers often use fake email addresses generated by special services. When checking such an address, you will not be able to get the specific data of the owner.
Use Airsharp Antifraud System
Using Airsharps Antifraud System is recommended as a reliable method of protection against intruders. There are a huge number of fraudulent schemes on the web. There are also many companies offering their protection services. If you sell goods or provide services whose transactions are conducted online, it is recommended to choose a reliable protection system.
Benefits of Airsharps Antifraud System
Using strong security systems will not only keep your money safe but also keep your customers safe. This approach tells them that the company cares about them and can be trusted. Airsharps AS has several advantages:
- If your customers know that you have comprehensive transaction security measures in place, it increases the value of your services and products;
- The number of unidentified transactions is reduced. This helps ensure that you retain genuine customers, thereby increasing your revenue stream;
- Using end-to-end solutions allows you to work equally effectively with both domestic and international orders.
It is important to keep in mind that many companies, when trying to identify fraudulent facts, can lose genuine customers. This happens very often. According to research, weak areas in customer verification are the ability to verify the customer's identity, the delay in payment of the order and the inability to confirm delivery. We adviыe you to pay attention to these points.