As we step into 2021, we cannot deny the importance of the internet in our lives. The year 2020 was dedicated to the online medium, from groceries to medicines, almost everything was shopped, online. It would not be unfair to say that, without the support of the internet, our lives would have been really difficult. While none of us is unaware of the benefits of the internet, we cannot deny the risks that lurk around the online medium, the presence of cyber-criminals have multiplied in the last decade and, the attacks have left us all in a state of shock. As per the ‘2017 E-commerce Fraud report’, the cybercriminals’ attack on the online shopping platforms had increased by 30% in 2017, as compared to the previous years. The instances of online attacks via e-commerce sites have been experienced worldwide. You need to be attentive and aware of the drawbacks while performing online shopping in safe environment.
Recently in India, a trader who had logged in to an online site to buy goods was robbed of a huge amount, worth millions. The worst part of these attacks is that the victim himself unknowingly becomes a part of the attack. In the US, identity theft affected almost 17+ million customers, it is indeed one of the most unfortunate side-effected of unprotected internet usage. The most common type of E-commerce fraud is payment fraud. Thus, as a consumer, you need to be very alert while you are making an e-commerce payment and as a merchant who is running an online store, you need to take the necessary step to doubly secure your store and keep it safe from the robbers.
As a Merchant, the
only to secure your online store is by knowing how to detect frauds in eCommerce, the common red flag scenarios are:
• Watch out for all first-time buyers on your store.
• Stay alert if someone is shopping like a king, with a large billing size
• Keep an eye on the shipping address, if it’s some unknown, unheard location, then the shopper could bring danger.
• Ring an alarm if the shipping address and the IP address does not match.
• Blow the whistle if you notice, multiple cards owned by different people is being used from one IP.
Now that you know the red flag scenarios, here are few tips to prevent E-commerce frauds:
1. Know the Different Types of Frauds
There are different kinds of eCommerce frauds like friendly frauds, clean frauds, identity theft, phishing, reshipping, card testing and many more. So, read about each of them and when you notice anything unusual, ask yourself if it signals any of the fraud types.
2. Too Many Adware
If you enter a website that hosts too many ad pop-ups, then it might be a sign of danger. The malicious sites usually host pop-ups and try getting access to your system, when you click on any pop-up, thus granting them permission in disguise.
3. Know if it is a Bot
AI is not used to develop the business but recently it has been used by cybercriminals to launch attacks on the websites. These bots crawl the online stores to tamper with the pricing of products and the inventory. So, if you find a product overly charged, then leave the page immediately, this could be a potential trap.
4. Use a VPN
If you are a fan of online shopping and every second thing in your surrounding is purchased online, then the best and safest option would be to use a VPN. A VPN will allow you to shop peacefully, without letting anyone watch over your activity. There are various VPN that is specially designed for E-commerce so if you are a merchant, then you must get one of them.
5. Is Your Payment Gateway Secured?
The most common type of online fraud is related to payments. The criminal wants to steal the money of your customers and leave you in a vulnerable position. Thus, double secure your payment gateways. Never store credit card information on your server. It is better to use third-party payment apps like PayPal for a better experience and most importantly, do not forget to get the accreditation for your Data Security Standard from the Payment Card Industry.
The Bottom Line
Keep your eyes open and your technology updated, that’s the only way you can save yourself from being attacks. Both merchants and customers are at risk of being robbed, thus watch out for the red signals and safeguard your online journey.
