With the emerging eCommerce industry, the number of fraud cases is also increasing. Fraudsters are taking advantage of being anonymous and started scamming people. One of the biggest frauds occurs in the fashion industry.
Due to the Coronavirus pandemic, the necessity of eCommerce has been increased. However, some people are still sceptical about an online purchase, but the majority of people have become dependent on eCommerce sites to fulfil their requirements. And online fraudsters have started taking advantage of this.
As the days go by, scammers are becoming more sophisticated and advanced about their techniques. In the fashion industry, bulk order is a common thing, therefore, it has been very easy for scammers to commit fraud and get away with it. A report says that after 2018, the online frauds in the fashion industry grew up to 47%.
Each year, the fashion industry suffers a great loss due to the bots. Bots are automated scripts that can run specific actions repeatedly in a matter of seconds. The items purchased through the bots are later sold in the black market at higher prices.
In the past year, 32% of retailers have experienced online frauds, while 44% experienced promotional abuse. In the meantime, the cases of wardrobing have increased rapidly. In wardrobing, the consumers buy apparel and jewellery only to take photos and then once done, they return it in between the return period.
Let’s take a look at the methods fraudsters are implementing nowadays.
Usually, people do not pay attention to reward points or loyalty points. Thus, it is easier for fraudsters to hack into users’ profiles and purchase products under their names. In this case, scammers hack into the user account, steal their profile data, redeem points, coupons, and use them to make purchases under their name without getting noticed.
Scammers find out that working in groups is more convenient, and they can cover more ground. And this has become the biggest headache for the eCommerce industry. A report from Forter says that fraudsters are combining their individual skills and form a group to scale up their attack and conduct a perfect heist.
These types of groups gather personal information from multiple data breaches or con campaigns. They conduct mass logins and make purchases. This way, the normal audience are left out and have no option other than to buy from the black market. Additionally, it becomes impossible for retailers to gather their acts and defeat them as they work simultaneously when the whole group attacks.
Misuse of Return Policies
As mentioned earlier, many people buy apparel and jewellery just to take a photo with it and return in between the return period. However, the fashion industry got a hold of this trick and has made its return policies austere. Due to this, the number of frauds has decreased in the past year.
In conclusion, fraudsters are evolving their techniques to conduct scams and drain people out of their money. The fashion industry is no exception. They suffer a lot as they lose their products and has a hard time recovering their sites after a major attack. With precautions, businesses can set up strict filters to reduce fraud and save their valued business.
Want to avoid a data breach in your eCommerce store? Connect with the developers of USA commerce and get their expert advice to enhance and protect your hard work. Contact us and get in touch with our counsellors and leave your worries with them.