Before you can protect yourself against Ecommerce fraud, you need to understand what it is. So, let’s define those terms.
When we talk about Ecommerce, we’re talking about commercial transactions conducted electronically over the Internet, usually via an online store. These transactions are typically made via desktop computers, laptops, tablets, and smartphones. When we talk about fraud, we are talking about criminal deception intended to result in a financial or a personal gain.
Ecommerce fraud is criminal deception that is conducted during a commercial transaction over the Internet with the goal of financial or personal gain of the fraudster while negatively affecting the bottom line of you the merchant.
Ecommerce fraud is also referred to as payment fraud. Most small businesses think they are not big enough to be noticed by fraudsters. There has been an increase in fraud attempts on Ecommerce merchants during the COVID-19 pandemic. Fraudsters continue to target smaller merchants because their websites and online shopping carts lack security measures. One of the most common impacts is card testing, which can easily be prevented with common fraud prevention tools and best practices.
While Ecommerce fraud is not new at all, it certainly is on the rise.
Small businesses are prime targets, especially when they experience tough times such as a major shift in the economy. Fraudsters know that many small businesses are hurting for business and the prospect of receiving an unexpected large order appears to those business owners as a gift from the sky. Sadly, those small business owners find themselves dealing with major losses, as those “surprise” orders turn out to be fraudulent transactions. By the time the merchandise has been shipped, the real card holders find out about the fraudulent charges on their accounts and in turn dispute those charges.
The merchandise is then lost and the chances of recovering those loses are slim.
The good news is that there are several steps businesses can take in order to drastically reduce such losses:
1. Be Proactive.
Review your website to see where you might be vulnerable. What customer verification tools do you have in place now? Never ignore suspicious activity.
2. Use Fraud Prevention Tools.
Configurable fraud filters will help set proper minimum transaction thresholds, payment velocity settings, country limitations, and more to help prevent processing fraudulent transactions.
3. Setup a Firewall.
Most firewalls come with basic tools for botnet detection, prevention, and removal.
There are additional steps to take that can dramatically reduce your risk.
To learn more, contact us here and ask us how to be better prepared and equipped!
Israel Zuela – Founder, Instapay Services, LLC