As you build your eCommerce brand, you will soon realise that there are a lot of people out there to scam you. In India alone, card and internet fraud increased from 2,545 in 2021 to 3596 in 2022. eCommerce frauds mostly happen in online transactions, when someone uses deception to gain unauthorised access to someone’s personal information or payment information to steal money or goods. Meanwhile, other fraud that we’ve seen is running fake scripts and causing RTOs or return to origins. Here, scammers place fake cash on delivery orders and cancel them once the items are shipped or out for delivery.
Moreover, eCommerce frauds are riskier than offline scams since identifying these online scammers is very difficult. Stopping them right away is becoming all the more necessary today than ever considering the pace at which the eCommerce market is expanding.
But how to do so? Are there any ways to reduce these eCommerce fraudulent activities from the grass root?
Yes, there are a few ways to help stop these deceitful activities.
In this blog, we’ll talk about 10 best practices to detect and prevent eCommerce frauds and preserve your hard earned money.
10 Best Practices to Detect And Prevent eCommerce Frauds
Check whether the shopping cart software and all the plug-ins are up to date
Remove inactive plug-ins
Make sure all passwords are strong enough for dashboards and databases
See if the website is scanned regularly for malware
Check the backup frequency of the online store
Examine if the SSL certificate is updated and working
Identify a shopper’s buying behaviour and suspicious patterns
Classify them as high-, medium-, or low risk shoppers with high risk being the ones who showcase higher propensity of cancelling or rejecting orders at the doorstep
Raise red flags to inform the eCommerce company about the chances of fraud or RTOs
Intelligently disabling cash on delivery as a payment option to high risk customers
Adding friction on cash on delivery such as confirmation prompts, OTPs or captcha to check a shopper’s intent
Double check a shopper’s address to ensure correctness and hence, low delivery defaults, and more.
Have a secure network – install firewalls and don’t circulate business passwords
Secure customer data – Never see, retain or have access to cardholder’s data
Vulnerability management – Use and update anti-virus software on a regular basis
Access control – Restrict cardholder data access in any form and assign unique IDs to individuals,
Network monitoring and testing – Before launching a website, do logging, testing, and audit trials
Information security – Maintain and adhere to policies dealing with the information security system
- Identify a shopper’s buying behaviour and suspicious patterns
- Classify them as high-, medium-, or low risk shoppers with high risk being the ones who showcase higher propensity of cancelling or rejecting orders at the doorstep
- Raise red flags to inform the eCommerce company about the chances of fraud or RTOs
- Intelligently disabling cash on delivery as a payment option to high risk customers
- Adding friction on cash on delivery such as confirmation prompts, OTPs or captcha to check a shopper’s intent
- Double check a shopper’s address to ensure correctness and hence, low delivery defaults, and more.
Conclusion
As long as the eCommerce market continues to expand, scammers will continue to scam merchants in new ways each time. But these best practices will reduce the risk of getting scammed and save your eCommerce store from unnecessary loss. It will not only reduce your business losses but also increase trust among your users. They will see you as a safe place to buy and your brand image will also get a positive impact out of this.
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