eCommerce is surging—but so is eCommerce fraud. Global eCommerce retail sales are expected to reach $4.9 trillion in 2021, but the industry will also sustain $40.62 billion in losses due to fraud.
If your business can't sustain the losses associated with fraud then it's time to start developing a stronger fraud prevention strategy. The good news is that the right strategies and solutions can do a lot of the heavy lifting for you. Here's what businesses need to know about what fraud looks like, ways to detect it, and why eCommerce fraud prevention solutions are essential to delivering a successful strategy.
The fraud definition, legally speaking, is a broad one. Fraud is an intentional deceptive act to illegally deprive someone of their legal rights, money, or property.
ECommerce fraud is a specific subset of fraud that is gaining popularity thanks to the rise of eCommerce in our digital (and pandemic-restricted) world. Experian defines eCommerce fraud as when a criminal leverages stolen payment information or stolen bank accounts to attempt transactions without the owner's knowledge or consent.
However, there are several types of eCommerce fraud, including:
Phishing and credit card fraud are classic examples based on Experian's definition, wherein a criminal uses false or stolen payment information to make transactions. However, some forms of fraud, like chargeback fraud, are insidious payment frauds—in chargeback fraud, a customer buys an item and then disputes the charge with the credit card company to try to get an item for free.
Fortunately for merchants, there are several ways to detect fraud. For example, one obvious red flag is a string of orders from a country you've never shipped to before. If you've never received a single order from Bhutan and suddenly receive ten in a week, there's something fishy happening here.
You can also spot signs of odd transactions if order information doesn't make sense. For example, if the order's city and ZIP code don't match, or the IP address and the email address don't match, be suspicious. Or, if a repeat customer suddenly orders from an IP address in a completely new and bizarre location (like a North American customer suddenly ordering from Nigeria) you probably have credit card fraud on your hands.
Unfortunately, protecting your eCommerce store from fraud is just as much of a full-time job as managing the actual store. This is where eCommerce fraud prevention solutions can save the day.
ECommerce prevention tools and solutions allow you to take a smarter approach to verifying transactions and identifying fraud. Rather than combing through transactions, you can enlist expert services and algorithms to spot patterns that don't make sense. It saves you time, and for the investment, it also saves your bottom line.
When you need expert eCommerce fraud prevention solutions, we're your go-to expert. Our fraud prevention solutions tackle everyday problems and big picture challenges in equal measure, delivering 0% fraud loss, 15% revenue increase, and 97% transaction approval. That way, you can focus on delivering a great customer experience.
Ready to focus on what matters? We'll take care of the rest. Schedule your demo today to learn how our solutions can strengthen your business.