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MII NEWS
List of E Commerce Scams You Need To Know Before Transacting Online
11 Nov 2021
By Maya Puspita
When we talk about E-Commerce, of course, we’re talking about commercial transactions conducted electronically over the Internet, typically through an online store. These transactions are usually made from desktop computers, laptops, tablets, and phones. When we talk about fraud, we’re talking about criminal deception intended to result in financial or personal gain.
When we talk about E-Commerce, of course, we’re talking about commercial transactions conducted electronically over the Internet, typically through an online store. These transactions are usually made from desktop computers, laptops, tablets, and phones. When we talk about fraud, we’re talking about criminal deception intended to result in financial or personal gain.
When you hear the term “E-Commerce fraud,” you likely think of stolen credit cards being used by criminals to buy products from online stores. But credit card fraud is just one of the most common types of fraud. here are the top 6 types of scams :
1. Credit card fraud, Credit card fraud is the umbrella term for fraud that is committed using a credit card.
2. Affiliate fraud, Afiliate fraud is illegal activity intended to generate affiliate commissions. In affiliate marketing, online merchants pay affiliates a commission for sales that affiliates refer.
3. Chargeback fraud, In the world of credit card transactions, a chargeback is a demand that a credit card provider makes to a retailer to refund a fraudulent or disputed transaction.
4. Phishing/account takeover, Most ecommerce stores provide customers with accounts that store personal information, financial data, and purchase history.
5. Interception fraud, In interception fraud, fraudsters use stolen credit cards to make online purchases, ship the goods to the address that’s on file for the credit card at checkout, but then intercept the package before it is delivered.
6. Triangulation fraud, Triangulation fraud uses three steps to defraud online merchants. In the first step, criminals create a fake online storefront, typically one that offers popular brand-name goods at bargain-basement prices.
Fraudsters are getting more sophisticated in how they attack online merchants. And the number of attacks on web stores is increasing as ecommerce grows in popularity. But E-Commerce merchants are also getting more sophisticated in how they detect and deter online crooks.
E-Commerce businesses need to be aware of the red flags that indicate fraud so as to reduce fraudulent activity. E-Commerce platforms have built-in security functions to ensure you and your customers are safe. Madeinidonesia.com claims to manage the security of all payments and ensure your company complies with the Payment Card Industry Data Security Standards.