The pandemic has brought several noticeable changes in our day-to-day life. Billions of people around the world stayed in home-quarantine during the prolonged COVID-19 lockdown period. In this period people developed many new habits and/or changed their lifestyles. This change is especially visible in the purchasing trend of the people. The convenience of the system soon caught up and it is adding value for both the customer and the retailers. But it has also opened the door for e-commerce fraud. Let’s dig into this issue and learn some safety tips against e-commerce scams.
What Is E-commerce Fraud?
E-commerce fraud is in the process of eluding the customers or the retailers. A customer might order a certain product and receive a duplicate copy or a damaged product. There are reports of no product delivery at all after payment. Simply put, e-commerce fraud is the process where multiple discrepancies occur either through the customer, the retailer, or the platform itself.
The pandemic accelerated the e-commerce business platforms. With that, several scams rose too.
There are several common scam types when it comes to e-commerce platforms. All of them affect retailers, e-commerce platforms as well as the customer. The nature and intricacies of these frauds make them almost impossible to recognize by the untrained eyes. However, all of these scams follow certain patterns which can be prevented with effective steps.
Ways To Avoid E-commerce Scam
These ways are specific to each of the e-commerce platforms, the retailers, and the customer. Since all three of the stakeholders in the e-commerce ecosystem face different forms of scams.
Conducting Site Security Audits
Sitewide audits can help to pinpoint the issues regarding scams. The thing about online scams is that they tend to exploit a small loophole within the system. So effective measures to secure any loophole can go a long way to prevent scams.
The scam itself occurs in a few different ways. Site security, dashboard, and admin access, payment channel access are a few of them. Regularly updating them and checking for malware can help to effectively protect against attackers.
Check For PCI Compliance
PCI stands for Payment Card Industry. The PCI standard requires e-commerce platforms to maintain certain conditions to ensure transaction transparency. PCI standard helps to effectively monitor the card transactions. It also checks for fraudulent payments and ensures complete security in the payment gateway.
Check For Suspicious Activities
Shoplifting is a common thing. Not just in physical stores but in e-commerce platforms as well. This type of fraud is carried out by false billing addresses or fraudulent payments. Just like physical stores, a customer’s activities can be traced to ensure there is no fraud. Many e-commerce sites appoint fraud experts to check for any kind of suspicious activity in the ordering process. Some services ensure the legitimacy of the billing address which is detailed in the next point.