E-commerce fraud is on the rise. While digitalisation has streamlined processes, consolidated data and vastly improved the efficiency of administration, it’s as much a blessing as a curse. When it comes to fraud, digitalisation has presented fraudsters with a massive opportunity – at the expense of e-commerce retailers.
The complete guide to stopping e-commerce fraud
Online businesses are an obvious target for cybercriminals, as it’s far easier for them to hide behind false details and cover up their tracks. An increase in international transactions have made this even easier, adding layers of complexity in terms of language barriers and long distance shipping – according to an informative Report from Ravelin.
For the most part, the vulnerability of e-commerce retailers (otherwise known as merchants) can be attributed to factors beyond their control. Digital disruption is an inevitable and transformative force, and the evolution of cybercrime is a mammoth challenge that no single organisation can manage alone.
The impact of e-commerce fraud on retailers
What happens when an online company (or any company, for that matter) becomes the victim of
fraud? The most obvious consequence is a loss of revenue and resources. In many cases, fraud goes
undetected, which makes the retailer’s traffic and other customer metrics unreliable. By failing to
protect themselves against fraud for whatever reason, the victim can find themselves in a very difficult
position.
Successful attacks damage the retailer’s image, making them seem unprepared and undependable. As well as harming e-commerce businesses themselves, fraudulent attacks can negatively impact consumers too. By visiting fake sites and making purchases, unwitting customers can have their details stolen and used to make purchases. In some cases, the customer can end up paying for a product or service that is never delivered.
All of this can sabotage the relationship between customers and e-commerce companies, reflecting badly on online retail as a whole. There’s an obvious need to respond to these issues, but before this can happen, e-commerce retailers need to know what they’re dealing with.
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