Ecommerce Fraud The Online Menace
Ecommerce fraud came about with the rapid increase in popularity of the dotcoms.
Unfortunately just as in the offline world there are plenty of unscrupulous people out there who will set themselves with an ecommerce fraud system.
The sole purpose is to steal money from the pockets of unsuspecting people who choose to carry out their business online.
Some preventative measures against ecommerce fraud:
You need to take sensible precautions against ecommerce fraud just as you would do in other areas of your business.
Check orders for discrepancies – large businesses normally have a system in place which will carefully filter orders to ensure any irregularities, possibly amounting to ecommerce fraud, are discovered.
The rejected orders are then manually checked to ensure they are genuine.
This will help prevent the money, time and effort lost in completing the order only to find out that it is a false lead.
Be sure to identify scams early – many people, who steal payment information over the net, will use that information for their benefit, i.e. to buy things over the net for themselves.
If you find that the address given for the credit card and the address given for delivery differ, it is worth investigation.
There are legitimate reasons for this however which will not be ecommerce fraud.
Such as gifting something, or someone’s credit card billing address being their home, but them wanting their goods delivered to the office, as they are out all day.
But it is worth checking nonetheless or make it a rule on your site that delivery address and credit card address must be one and the same.
Be careful here though, you need to balance your fight against ecommerce fraud with potential loss of good customers. As in all things a compromise must be reached.
Verify the address early on in your order process – most companies check on whether the information given at the registration time is true – specifically things such as address, phone numbers, etc.
If there is any discrepancy found, then put a red flag on that customer and watch him/her closely for ecommerce fraud purposes. Alternatively there are specialist companies that can do this work for you.
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Document all communication – this is a great insurance in case you become a victim of ecommerce fraud to prove that you excercise good business practice..
Your insurance company and finance houses will look much more favorably at your claim for ecommerce fraud accordingly.
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