Virtual shopping malls are full of goods of all kinds from needle to cars and E-commerce sites ensure fast-paced goods and service delivery that attracts new buyers very much. However, just as everything has advantages and disadvantages, so does E-commerce.
Frauds in e-commerce has grown significantly worldwide over the past few years with a sharp rise in online markets and more customer engagement. With sophisticated technology available to fraudsters, it is now very difficult for e-commerce businesses to keep track of the tactics used to defraud businesses online.
Also, it is difficult to detect online fraud and catch the person or the group who have performed this online cheat. Online fraudsters often cross border areas of a particular region, making it difficult to obtain legal punishment from the authorities.
The tremendous growth in the e-commerce industry, as well as the increase in the use of credit cards, is directly linked to the increase in fraud at the same time.
Common types of e-commerce frauds
- In the case of a refund, a customer purchases a product and seems the online seller that it has not been bought by him claiming that someone has stolen his credit card and wrongly demands refunds for reasons of not shopped by him from their online store.
- This type of e-commerce fraud is very common these days, in this a fraudster tries to attract a large number of audiences by creating a fake online shopping space. Fraudsters tend to create a new account and make a list of popular and attractive items at very low prices to attract the majority of customers in the shortest possible time. As the last day of delivery passes, complaints of non-receipt of items begin to be filed. The fraudster is trying to keep the whole process going on until the day of fraud using various tactics. In the case of counterfeit goods, claims that something is false are starting to creep in.
- Credit card fraud can be committed when a person buys online with a stolen card or when a person takes a direct user account. You may also like to read detailed version types of e-commerce frauds and debit card frauds.
- Pure fraud, fraudsters use stolen credit card information to make online purchases and use technology to do the job to block any fraudulent access opportunities. Fraudsters enter confidential card details and easily escape without causing any handset traps set to prevent fraud.
- The e-commerce platform incorporates countless intellectual property such as trademarks, copyright, patent, and designs, which is why product brainstorming emerges as an astonishing concern of online trading synchronization. There have been many cases where brands or trademarks have been misused on the online selling and buying platforms and the sale of counterfeit products on such websites is rampant.
- Where consumers file fraud, billing, or credit cards are at risk. Fraudulent accounts were created with the intention of using a reduced payment card to make purchases. Many buyers also abuse the services offered by the market such as their return policies, guarantees, etc.
- Some companies will incur additional costs for printing your exit statements when you move for checkout online, while others steal one-time or multiple payments without your permission. To prevent this, it is always a good idea to make sure you are buying from a trusted e-commerce platform or going for cash on delivery option.