Trends In Ecommerce Fraud To Watch

5 Trends In Ecommerce Fraud To Watch

Regardless of your business, there are several trends in ecommerce fraud that you need to be aware of. These trends can significantly affect how you protect your business and make money.

Card Testing Fraud

Identifying and controlling card testing fraud or any cnp fraud is essential for merchants. While it may be impossible to prevent all fraudulent transactions, a system in place can flag suspicious orders and block future customers from making purchases.

Card testing is the practice of fraudulent transactions in which a merchant or e-commerce site tests a stolen credit card or payment credentials to determine whether it works. Card testing is often done in large batches, as fraudsters try to obtain and use many credit card numbers. Card testing is most common in quick-service restaurants and other businesses that offer low-dollar, low-value items.

A few signs to look for will help you determine if your business is being targeted by fraudulent activity. For example, low-value purchases can go undetected by cardholders, while multiple purchases from the same customer or IP address can indicate fraudulent activity.

Account Takeover Fraud

Despite the many technological advances in the fight against fraud, account takeover fraud is a real threat. It can wreak havoc on your finances and your well-being.

Account takeover fraud is the theft of an online account by a criminal. The goal of account takeover fraud is to make purchases on the performance of the legitimate user. Account takeover fraud has risen over the last few years, with fraud losses increasing by 80 percent between 2016 and 2017.

Protecting your accounts is the best way to combat this type of fraud. First, create strong passwords. Second, monitor account alerts and investigate suspicious activity. Finally, consider placing a credit freeze on your account.

Account takeover fraud is a growing threat that is easy to miss. Fraudsters are always coming up with new methods for getting into accounts. For instance, scammers can use stolen credit card information or social engineering techniques to obtain login credentials. They can also gain access to account numbers via card skimmers or online hacking.

Friendly Fraud

During the past few months, friendly fraud has become a favorite of scammers. Unfortunately, this fraud is often carried out by disingenuous cardholders who will attempt to claim with their FIs.

Fraudsters often make test purchases to test the validity of a card. The test purchases are usually small and can help determine a card’s limit. They use bots and scripts to make multiple purchases on a single credit card number.

Fraudsters also use stolen card details to make purchases. Using this information, they can create new user accounts for various stores. They can also take advantage of loopholes in free trials. They can also create new bank accounts to use for purchases.

Friendly fraud is an increasing problem for ecommerce businesses. A 2021 survey of ecommerce merchants found that the number of attempted fraud attacks per month increased exponentially with business size. This trend is expected to continue in the future.

Chargeback Fraud

Even though ecommerce has become one of the most popular platforms for businesses to thrive, it is also one of the most vulnerable to fraud. Fraudsters employ various tactics, and eCommerce merchants need to be on the lookout for them.

The best way to combat fraud is to use a robust fraud prevention tool to detect and manage chargebacks. There are several fraud detection solutions available, and they can help you find fraudulent customers and minimize the damage to your bottom line.

There are two types of chargeback fraud to watch out for. The first type involves a scammer stealing card information and making a fraudulent purchase. The other involves a savvy fraudster contacting a merchant and requesting a refund in a shady fashion.

Phishing

Having to deal with phishing in ecommerce fraud is one of the biggest concerns for businesses today. However, there are several ways to protect yourself from these attacks.

The first and foremost step to combat phishing in ecommerce fraud is to educate your employees about how to prevent phishing. You can also ask your customers to report any suspicious activity to law enforcement.

Phishing in ecommerce fraud involves sending emails with a link to a fraudulent Web site. The link may be clickable or request private information from the victim. Additionally, the fraudulent Web site may contain malware that automatically installs on the victim’s computer.

The links may also be fake, allowing the attacker to hijack the victim’s login credentials on the Web site. The fraudster may use the credentials to make online transactions.

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