e-commerce fraud

E-Commerce Fraud: How it Happens and How You Can Stop it

E-commerce fraud comes in many forms, all of which are extremely dangerous to consumers and online businesses alike. E-commerce fraud is widespread: according to econsumer.gov, in just three months,  between January and March 2019, there were 5,305 e-commerce fraud reports in the U.S. In addition to being rampant, e-commerce fraud is constantly evolving, as cybercriminals develop new techniques to sidestep the security measures deployed by online businesses.

With all this in mind, it is obviously imperative for entrepreneurs to stay well-informed about e-commerce fraud and patch whatever vulnerabilities may exist in their security frameworks. This is where the infographic below will prove helpful. The infographic presents a high-level overview of common types of fraud, and several specific steps startups and entrepreneurs can take to reduce the threat.


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As the infographic points out, the benefits of implementing or enhancing online security go beyond deterring fraud, as increased online security also serves online businesses in more constructive ways.

For instance, we have reached the point where simply having an HTTPS website is immediately reassuring to many, if not most, online consumers — the fact that Google has been labeling non-HTTPS sites “Not Secure” on its Chrome browser since 2018 has gone a long way toward reinforcing this perception. When customers perceive that an e-commerce store is secure, they are naturally more inclined to order, and to order repeatedly.


Related: 4 Best Practices for Cybersecurity Compliance in 2020

In a similar way, when an e-commerce business requires customers to use a complicated password and change it periodically, they may feel some initial irritation — but once those customers step back and reflect, they will realize that the policy is there to protect them by keeping their sensitive data as secure as possible.

Because data breaches have become so common and so widely publicized in the media, public awareness of (and fear of) cyberattacks has never been greater. If your e-commerce business has shied away from implementing security practices out of fear of shopping cart abandonment, those fears are most likely misplaced.

The key to preventing e-commerce fraud is never to become complacent. Some organizations think, for instance, that simply converting to HTTPS is enough. It isn’t. While HTTPS is essential in the fraud prevention game, much more needs to be done to create a solid barrier against cybercriminals.


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As the infographic says, implementing as many of the fraud prevention activities as possible is the surest way to help tip the odds strongly in your favor.

For more information and insights, continue reading below.

This infographic was created by First Data, a provider of data security

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