Of course, these numbers are great news for entrepreneurs, but with sales growth comes a rise in fraud. In 2029, e-commerce fraud could rise to as much as $109 trillion. But you can implement features and processes to protect your business.
By being as informed and prepared as possible and combining the right fraud prevention tools and measures, you can protect your profits and your business. In this guide, you’ll learn what ecommerce fraud is, the different types of fraud merchants face, and tips on how to combat it, including Shopify’s free and built-in tools like Shopify Protect and Fraud Analysis.
What is e-commerce fraud?
There are many types of e-commerce fraud, malaysia email list and the term itself is more of an umbrella term that encompasses all forms of fraud that occur on an e-commerce platform. This is why e-commerce fraud is sometimes referred to as payment fraud. While different fraudsters use different methods, the goal of all types of online fraud remains the same: to steal money or products from merchants without being detected.
A cybercriminal needs both personal and credit card information to carry out e-commerce fraud. However, facing rises in the cost of living unlike fraud in a brick-and-mortar store, he/she does not need a physical card.
The cost of e-commerce fraud is increasing every year, and there are a few reasons for this. This makes it difficult to get police or authorities to investigate. Add to this the relative anonymity that online fraudsters can maintain while carrying out their schemes, which makes e-commerce fraud very tempting for cybercriminals.
What types of e-commerce fraud are there?
The term “ecommerce fraud” is more of an umbrella term for all the different types of fraud that can be committed on an online commerce platform. To protect and prevent fraud against your store, it’s helpful to understand the different types of fraud you and your store could experience. Here are seven types of ecommerce fraud you should know about:
- credit card fraud
- Friendly Fraud
- Account Takeover Fraud
- Interception Fraud
- Triangulation Fraud
- Affiliate Fraud
- refund fraud
1. Credit card fraud
This type of scam typically works when a fraudster gains unauthorized access to credit card information, switzerland leads often through the black market. They then use the card information to purchase a product or service. The criminals first defraud the credit card holder by using their data illegally. Later, they defraud the merchant, who must refund the illegitimate transaction.
Refunds are usually issued after the product has already been shipped or the services have been used.