Top 5 methods to halt eCommerce fraud
The global eCommerce market is predicted to touch the 7 trillion US Dollars mark in 2025. Well, this doesn’t just serve the good guys, bad guys are also getting their peck from this huge hit! Big money brings big risks, with noticeable growth in the e-commerce sector we can expect an increase in e-commerce fraud committed.
The pandemic has brought more traffic to the eCommerce sphere, and concurrently we have witnessed an evolution in the methods of fraud being committed. According to a research conducted by Juniper, the eCommerce fraud is estimated to reach 25 billion dollars by the end of 2024 undeterred by the implementation of Secure Customer Authentication(SCA) in Europe.
the eCommerce fraud is estimated to reach 25 billion dollars by the end of 2024 undeterred by the implementation of Secure Customer Authentication(SCA) in Europe.
Despite any innovative and advanced fraud prevention technologies, cybercriminals are changing their way to get the job done and retailers are hit with more than 200,000 cyber-attacks on their stores globally.
With the reference to the study conducted by Crowe UK and the center of counter fraud studies (CCFS) about the European retail scams that incorporates eCommerce fraud, we are able to spot that 21% of consumers are insecure about their credit card data and another 19% speculate that their confidential data may be misused. And 54% of the total consumers confirmed that they have faced suspicious deeds through the internet. These findings wrap up the alarming cause of online fraud.
54% of the total consumers confirmed that they have faced suspicious deeds through the internet
Online merchants are provided with a wide range of fraud prevention tools to pick from while considering their business requirements. How can we mitigate the eCommerce fraud and more importantly how to assure the safety of the shoppers while doing an online purchase, Let’s dive into some tactics that can prevent potential fraud.
Take away tactics for fraud prevention:
1. Detection & Prevention
For preventing fraud, we should first detect the fraud. For effective detection of fraud, viable data of transaction history should come to play along with advanced ML and AI. The work doesn’t end there, a preventive system should be initialized to bypass such havoc. An end-to-end fraud risk management system will optimize the security and keep the systems up to date with most leading technologies and protocols as well as deprecating the legacy systems.
2. The More Data the More accuracy
Fraud prediction is never based on a single odd one out. Each transaction is analyzed and given a score based on the likely hood of the transaction is a fraud risk and this is done by coupling various data structures and elements. This requires robust data! These data help an analyst to understand what is normal and what is not within a given set. The more data an eCommerce retailer has, the faster and more accurately it can detect and prevent fraud.
3. Leverage AI and Machine Learning
Integrating AI into the fraud prevention tool is an efficient way to deliver the security a customer expects. A Machine learning solution is an effective way to analyze and process a prolific amount of data and deliver the end result to approve or decline a transaction.
4. Added Authentication layers can be effective, but they come at a cost
At the end of the day, everyone wants a seamless shopping experience. Adding a strong customer authentication can taper fraud risk and even assist to keep the fraud liability away from the merchant and credit providers, but keep in mind that this is not guaranteed fraud prevention, and at the same time this requires the cardholder to verify their identity via password or OTP. While this is an added layer of security concurrently the process will be wearing for most of the shoppers.
5. Partner with a 3rd-party fraud prevention system.
E-commerce is subjected to a series of updates from time to time and fraudsters are constantly adapting new methods to find a loophole. While integrating a third-party fraud prevention solution, make sure the regulations and compliance are met. The security system that is not up to date makes it easy for fraud susceptibility, viruses, and malware
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