The number of eCommerce frauds is increasing day by day. According to Statista, in 2020, 155.8 billion people were affected due to the fraud and data breach, and 2.18 million complaints were lodged with FTC. The damage caused due to online fraud comes third in the economic crimes across the globe.
Therefore, as the online store owner, it is essential to protect your customers and your store from latent eCommerce fraud. Additionally, they require to implement the fraud management system in their stores to detect and prevent possible frauds.
Shopping fraud is a serious threat that you need to take seriously. So let’s take a look at the types of fraud and how you can prevent them.
The changing face of fraud
With time passing, the types of fraud are increasing, and impostors are trying various strategies to trick the consumers. Therefore, it is essential to identify these tricks to address and prevent them directly. Here are six types of common fraud practices the fraudsters apply that you need to be aware of.
- Credit card fraud
- Friendly fraud
- Refund fraud
- Account takeover fraud
- Interception fraud
- Triangulation fraud
Additionally, the number of frauds in buy online and pick up in-store are the highest than any other category. These types of frauds are less risky as they don’t have to provide the shipping address.
Preventing online frauds is one of the most laborious and challenging work for retailers. The fraudsters are changing their techniques each day, therefore it is hard to prevent each tactic in time. Nevertheless, here are the two ways retailers can prevent themselves from fraud. Let’s take a look.
- Big Data
As an eCommerce store, your team handles a huge amount of data, and it is hard for any individual to go through each one personally and figure out any dissimilarities. However, with a large amount of data, modern analytical tools can easily detect unfamiliar patterns and notify retailers.
Payment service providers can scan their data stream and notify the retailers of any unfamiliar activities and prevent the sensitive data of the business and their customers.
- Machine Learning
Machine learning is one of the methods of artificial intelligence. Its self-learning system is capable to categorize data and filter out unfamiliar patterns. It identifies the unfamiliar patterns into two categories: the change in consumer behavior and outsider attack.
With machine learning, characteristic patterns are pre-assigned to the customers, merchants, and user accounts. This helps to detect unfamiliarity and protects sensitive information.
It is advisable to invest in a few fraud protection tools that can help you prevent them from the early stages. Additionally, it is impossible to foresee fraudsters each trick as they are continuously adopting new methods to trick people and make money. In the beginning, fraud prevention may seem a bit hard and complicated. However, with enough precautions, you can prevent data theft and its recovering cost.
Is this making you feel overwhelmed? Connect with the right eCommerce business development partner and leave all of your worries with them. Contact USA commerce now and get the best guidance from our experts.