{"id":169951,"date":"2021-02-03T18:21:35","date_gmt":"2021-02-03T15:21:35","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/best-practices-to-prevent-ecommerce-fraud\/"},"modified":"2021-02-03T18:21:35","modified_gmt":"2021-02-03T15:21:35","slug":"best-practices-to-prevent-ecommerce-fraud","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/","title":{"rendered":"#Best Practices to Prevent eCommerce Fraud"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e5f99c275c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e5f99c275c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/#What_is_eCommerce_Fraud\" >What is eCommerce Fraud?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/#Reasons_why_eCommerce_fraud_occurs\" >Reasons why eCommerce fraud occurs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/#Types_of_eCommerce_Fraud\" >Types of eCommerce Fraud<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/#1_Credit_Card_Fraud\" >1. Credit Card Fraud<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/#2_Affiliate_Fraud\" >2. Affiliate Fraud<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/#3_Phishing\" >3. Phishing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/#4_Interception_Fraud\" >4. Interception Fraud<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/#5_Chargeback_fraud\" >5. Chargeback fraud<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/#How_to_Recognize_eCommerce_Fraud\" >How to Recognize eCommerce Fraud<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/#Practices_to_Prevent_eCommerce_fraud\" >Practices to Prevent eCommerce fraud<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/#1_Carry_out_frequent_site_security_audits\" >1. Carry out frequent site security audits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/#2_Track_your_website_frequently_for_suspicious_activities\" >2. Track your website frequently for suspicious activities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/#3_Use_Fraud_Protection_Services\" >3. Use Fraud Protection Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/#4_Verification_Technology\" >4. Verification Technology<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/#5_Email_Authentication\" >5. Email Authentication<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/buradabiliyorum.com\/en\/best-practices-to-prevent-ecommerce-fraud\/#6_Pinpoint_the_origin_of_the_transaction\" >6. Pinpoint the origin of the transaction<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Best Practices to Prevent eCommerce Fraud<\/strong>&#8221;<\/p>\n<div class=\"entry-inner\">\n<p class=\"opener\">The opportunity of cybercriminals to attack online businesses is increasing as online shopping becomes popular. If you possess an online business, you have to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.entrepreneur.com\/article\/324464\">protect it from fraudsters<\/a> who may ruin your reputation, steal from you, and harm your brand.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_eCommerce_Fraud\"><\/span><strong>What is eCommerce Fraud?\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>eCommerce is a commercial electronic transaction via an online store. The transactions are made from phones, laptops, desktop computers, and tablets.<\/p>\n<p>eCommerce fraud is a criminal act carried out during a commercial transaction via the internet with the intention of personal or financial gain of fraudsters. eCommerce fraud is intended for online merchants, and the act is intended to be undetected.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Reasons_why_eCommerce_fraud_occurs\"><\/span><strong>Reasons why eCommerce fraud occurs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Ease.<\/strong> Fraudsters can now access a site on the dark web and purchase stolen credit cards. Before the internet era, they would steal credit cards physically from people and use them.\u00a0<\/p>\n<p><strong>Obscurity.<\/strong> eCommerce fraud is common because it is carried out anonymously. Fraudsters do not need to steal from anyone and be captured on cameras. They only require a computer and the internet and steal at any time, any place without being seen.\u00a0<\/p>\n<p>They create fake email addresses that cannot reveal their true identity.\u00a0<\/p>\n<p><strong>Escape.<\/strong> Fraudsters know that eCommerce fraud is not followed up by law like other criminal acts. The money they steal every time they carry out the crime is small compared to other crimes.\u00a0<\/p>\n<p>However, eCommerce fraud mostly occurs across international borders, making it difficult for police to identify their location and arrest them in other countries.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Types_of_eCommerce_Fraud\"><\/span><strong>Types of eCommerce Fraud<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>eCommerce fraud is not only about stolen credit cards, as many people think. Here are the most common types of fraud.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Credit_Card_Fraud\"><\/span><strong>1. Credit Card Fraud<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Also referred to as <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.icecubedigital.com\/blog\/how-to-prevent-credit-card-fraud-on-your-ecommerce-website\/\">payment fraud<\/a>, the fraudster uses information from a stolen card to buy goods and services from an online merchant. The transaction defrauds the seller, who is forced to refund the purchase.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Affiliate_Fraud\"><\/span><strong>2. Affiliate Fraud<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The goal of affiliate fraud is to initiate affiliate commissions. Affiliate commissions are paid to affiliates in affiliate marketing for sales they refer.\u00a0<\/p>\n<p>eCommerce fraudsters defraud online sellers using fake activities to initiate or inflate commissions.\u00a0<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Phishing\"><\/span><strong>3. Phishing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Also known as account takeover, fraudsters hack into accounts using phishing schemes. Online merchants offer these accounts to customers for storing their financial information, personal data, and purchase history.\u00a0<\/p>\n<p>An email is sent to customers to defraud them into providing their personal information such as their usernames and passwords. The fraudsters then log into the accounts and make unauthorized purchases.\u00a0<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Interception_Fraud\"><\/span><strong>4. Interception Fraud<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Here, fraudsters buy products online using stolen credit cards and ship them to the cardholder\u2019s address. After the transaction is successful, they contact the merchants before the product is shipped, and they change the shipping address to their desired address.\u00a0<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Chargeback_fraud\"><\/span><strong>5. Chargeback fraud<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It is also known as friendly fraud. After the buyer has purchased products online, the fraudster waits for several weeks or months then notifies their bank, claiming the transaction as unauthorized.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Recognize_eCommerce_Fraud\"><\/span><strong>How to Recognize eCommerce Fraud<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As an online seller, you can identify eCommerce fraud in different ways. Keep in mind that for an eCommerce fraud to be successful, it depends on the criminal\u2019s skills. As merchants become protective of their online businesses, eCommerce fraudsters also improve their skills. Some of the common ways to identify fraud are;<\/p>\n<p><strong>Conflicting data.<\/strong> Check if the zip code and the city of the buyer match. Also, their IP address and their email should match.<\/p>\n<p><strong>Large orders.<\/strong> Fraudsters want to receive large orders before they are caught. Mostly, they will purchase an order larger than what your customer spends.<\/p>\n<p><strong>Suspicious location.<\/strong> If your customer buys from an IP address in America and suddenly buys from another location, it should raise a red flag.<\/p>\n<p><strong>Numerous shipping addresses.<\/strong> Mostly, fraudsters will buy many products and ship them to different addresses.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Practices_to_Prevent_eCommerce_fraud\"><\/span><strong>Practices to Prevent eCommerce fraud<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Carry_out_frequent_site_security_audits\"><\/span><strong>1. Carry out frequent site security audits<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Make sure your shopping cart program and plugins are updated.\u00a0<\/li>\n<li>Backup your online store regularly.\u00a0<\/li>\n<li>Strong passwords are highly recommended for admin accounts, database, CMS, and FTP access.\u00a0<\/li>\n<li>Scan your site for malware.\u00a0<\/li>\n<li>Encrypt communication between your business, suppliers, and your customers.<\/li>\n<li>Remove all inactive plugins.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"2_Track_your_website_frequently_for_suspicious_activities\"><\/span><strong>2. Track your website frequently for suspicious activities<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Follow up transactions and accounts for activities like shipping information, inconsistent billing, and the physical address of your buyers. You can look for <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/seon.io\/resources\/how-anti-fraud-tools-can-help-your-business-prevent-chargebacks\/\">anti fraud tools that monitor IP addresses<\/a> and inform you of suspicious addresses.\u00a0<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Use_Fraud_Protection_Services\"><\/span><strong>3. Use Fraud Protection Services<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Look for service providers who will help keep your systems updated. They will inspect all your transactions and validate legal orders.\u00a0<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Verification_Technology\"><\/span><strong>4. Verification Technology<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Card Verification <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">Technology<\/a> is highly recommended to confirm that the card belongs to the rightful owner.\u00a0<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Email_Authentication\"><\/span><strong>5. Email Authentication<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The most difficult thing is detecting if a message comes from a fake email address or not. However, with email authentication, you can avoid this.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"6_Pinpoint_the_origin_of_the_transaction\"><\/span><strong>6. Pinpoint the origin of the transaction<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Tracking the device being used to make an order can assist you<\/p>\n<hr class=\"wp-block-separator\"><em>Photo by <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/unsplash.com\/@jefflssantos?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\"><em>Jefferson Santos<\/em><\/a><em> on <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/unsplash.com\/s\/photos\/fraud?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\"><em>Unsplash<\/em><\/a>\n<\/div>\n<p><\/p>\n<div class=\"author-inner\">\n<p class=\"bio-name\">Megan Wright<\/p>\n<div class=\"bio-desc\">\nMegan Wright is the Chief Editor for ChamberofCommerce.com. Chamber specializes in helping small businesses grow their business on the web while facilitating the connectivity between local businesses and more than 7,000 Chambers of Commerce worldwide.<\/div>\n<p><!-- social-link --><\/p>\n<div class=\"clear\"><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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If you possess an online business, you have to protect it from fraudsters who may ruin your reputation, steal from you, and harm your brand. What is eCommerce Fraud?\u00a0 eCommerce is a commercial electronic&#8230;<\/p>\n","protected":false},"author":1,"featured_media":169952,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.noupe.com\/wp-content\/uploads\/2021\/02\/jefferson-santos-9SoCnyQmkzI-unsplash.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[70375,77891,78093,72287],"class_list":["post-169951","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cybersecurity","tag-e-commerce","tag-ecommerce","tag-security"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/169951","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=169951"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/169951\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/169952"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=169951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=169951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=169951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}