The eCommerce industry is growing by leaps and bounds. In the US alone, eCommerce grew by 14.2% in 2018, reaching $517.36 billion. The growth is impressive, but it also encourages the fraudsters to find new ways to violate online businesses and consumers. According to figures, over 75% of travel and tourism companies were victimized by online fraudsters in the previous year.
Ensuring the safe and protected online payment environment is the job of eCommerce platform owners, but the losses can be also reduced by a little more attention and knowledge by the consumers as well.
Today, we will discuss in more detail the payment frauds and the common practices that can be used for effectively minimizing the faster payment fraud risks we all face in the world of ecommerce.
Here are some examples of online fraud in the eCommerce industry:
Phishing: This is one of the most common ones where the private information of your account (credit card, debit card, internet banking) is stolen for stealing your hard-earned money. If you are using a secure website, such as a partner with a bank, the website is trustworthy. On the other bands, the unfamiliar sources indicate an attempt at stealing information.
Identity theft: Although this exists outside the digital world, it’s a common type of fraud online. The online fraudsters who steal your personal information can use it under pretense. The identity theft is committed by hackers after penetrating firewalls through old security systems or by hijacking login credentials.
Triangulation fraud: There are many websites that sell genuine products, the hackers create websites that contain the designs and names, which are similar to the top brands to create an illusion. The products or services on such websites are usually a lot cheaper price. Customers misunderstand these websites as their trusted brands and put in their card details to purchase products, and then the fraudsters use that for fraudulent activities.
Mitigating Faster Payments Fraud
PCI-DSS: For every business, it is essential to comply with the Payment Card Industry Data Security Standard. This is to ensure that the system is secure and the customers can trust the websites with sensitive data, and it improves the reputation. Working with reliable and secure online payment processors like DizziPay ensures that your platform is PCI and DSS compliant.
AVS: Address Verification System is another important consideration that must be handled by the online store owners to automate fraud prevention and reduce the risk for merchants selling in the “card-not-present” environment. This ensures a complete check on the billing address listed in the transaction against any other address registered with the issuing bank for complete safety from online frauds.
A 3D Secure: Implementing 3D secure environment for online shopping is the right choice to add a security layer for online credit and debit card transactions. Using the 3D security system takes your online security a step ahead than the standard comprehensive fraud protection techniques, as it ties the payment authorization process to an additional online authentication step.
There may be online merchants that opt-out of accepting online payments, but does this avoid fraud attempts? No, the risk increases even more as the frauds can even take place offline as well as online.