The Covid-19 pandemic has led the world into unexpected health and economic crises, transforming lifestyles, preferences, and habits of consumers and also the way organizations will work. Customers now more than ever preferring shopping in a manner that is comfortable, safe, and hygienic and the e-commerce space meets these requirements. As the e-commerce space continues to grow globally, it is also solidifying its foothold in the Indian marketplace. Strict lockdown restrictions have driven technology-averse consumers towards using technology for delivery of food and online shopping of essential commodities. Consumers are embracing the changes in their lifestyles as a result of the COVID-19 pandemic. The requirement for social distance and stay safe at home means that customers are changing their buying habits and frequently making online purchases. This growth in online activity is also leading to a rise in eCommerce fraud.
However, misinformation and online scams around Covid-19 have been on the rise and increasing extensively. Hackers are taking advantage of this situation to trick people through online scams. To help e-commerce businesses become more aware of such scams, we have listed out a few tips to get rid of such online scams.
Beware of Trends
The most difficult perspective of online frauds is its versatility. These frauds may take place in different ways, through the stealing of passwords or the use of the Trojan virus. In order to secure your business and your business partners, it is crucial that you are aware of the latest types of frauds. Some of the most popular online scams during the current crisis are retail arbitrage, reselling, and account takeover. It is essential to be aware of these trends so that you are not caught off-guard. It is equally important that you spread this information among your partners, as the pandemic outbreak has made everyone more sensitive to scams and hoaxes.
Choose Right Payment Gateway
As more and more people are relying on e-commerce businesses to meet their requirements, there has been an unusual increase in online payments. In such cases, online businesses need to choose trustworthy payment processing service providers. If your payment provider has a solid track record, it minimizes the likelihood of online frauds for your own business and your partners. Top-notch payment processors use state of the art technologies to secure their systems against any cyber-attacks. This ensures that your system does not break down under the pressure of increased payments and transactions.
Prioritize User Authentication
User authentication is an important factor in any fraud case and should receive even greater priority today. Setting strong password requirements and performing multi-factor authentication helps check fraud attacks from account takeover. Utilizing more unique elements into decisions can help authenticate the users and decide the validity of the transactions.
AI-based Machine Learning Fraud Solutions
AI-based machine learning fraud solutions help your business stay ahead of fraud trends. Leveraging data profiles to model both “good” and “bad” behavior helps find and lessen fraud. AI-based machine learning will be frequently essential to stay ahead of the explosive and complex eCommerce fraud.
Collaborate with payment and security partners to adapt and efficiently leverage all your fraud defenses. Pair AI/ML with device fingerprinting through analytics to generate targeted approaches that are most appropriate to your industry. Increasing capacities around device fingerprinting and behavioral data are required to recognize fraud before it occurs. While much of the user-input values can be easily managed to look more authentic, device fingerprinting and behavioral data are taken in the background to obtain unique details from the user’s device and behavior.
Be Careful and Proactive
During these tough times, it pays to be careful. While you should keep your tools and programs updated, you should also remain vigilant of any unusual or strange transactions and incidents. For example, you should frequently carry out a thorough inspection if you notice a new account making important transactions. In the case of an old account making unusual purchases, it would be reasonable to cross-verify the details. Such alertness can not only save your business but may also provide extra security to your customers. Similarly, you should ask your partners to remain careful about any red flags.
Whether malicious or unexpected, fraud can have a significant impact on e-commerce business and its bottom line. Fraudulent e-commerce activity has been on the rise in the pandemic, so businesses must have the right technology to resist these attacks. While it’s simple to get caught in the daily tasks of running a business, fraud prevention is one thing sellers can’t afford to neglect. The trend of changing customers’ shopping habits and behavior is an opportunity for digital entrepreneurs. Once the situation improves, sales of the e-Commerce industry may stabilize at a low growth rate than today but the transforming behavior of customers is already in action to overall change retail and commerce for years to come.