E-Commerce is one of the major sectors of online business. As a sector that continues to expand in size, volume, and influence, it is not surprising that limitations still exist in this big online sector.
Fraud in e-commerce has grown significantly worldwide over the past few years with a sharp rise in online markets. With sophisticated technology available to fraudsters, it is difficult for e-commerce businesses to keep track of the technologies used by the fraudsters for conducting fraud in different ways.
There is no doubt that the e-commerce industry is very profitable and emerging but every growing sector has some risk associated with it.
With transactions occurring at such high prices, the introduction of cutting-edge technology, and most importantly the growing demand for e-wallets, the risk of fraud including identity theft, return fraud, card fraud, and many other innovations have begun to undermine cooperation.
Before moving to frauds associated with e-commerce, let us make you aware a bit about e-commerce. What this online marketplace is all about?
E-commerce is an online portal that involves a large number of buyers and sellers, where buyers look for favorable goods and services and choose the best out of the thousand sellers for satisfying themselves with vital products even without going to the actual market place. There a large number of e-commerce sellers that are active with their virtual stores and local services for the buyers.
Common types of e-commerce frauds
We have listed some of the common types of e-commerce frauds that make you aware of the knowledge that helps at preventing or get protection from bad deeds of fraudsters.
Fraudulent accounts were created with the intention of using a reduced payment card to make purchases. Many consumers also abuse the services offered by the market such as their return policies, guarantees, etc. Recently there was a case of two children buying expensive phones at Flipkart and claiming to have found empty boxes.
A fraudster asks for a refund claiming that the product was never received or for a refund for a fake product that you have already purchased and exchanged for the actual product you received. With refund fraud, the seller suffers from loss of revenue due to reimbursement made and loss of inventory when the fraudster returns something that is not true or wrong.
In the case of fraudulent scams, fraudsters use the details of a stolen payment card to make online purchases and use technology to do the job to block any fraudulent opportunities. Fraudsters enter confidential card details and easily escape without causing any handset traps set to prevent fraud. This is one of the most common types of e-commerce frauds and debit card frauds.
Identity theft is a method of collecting personal information such as user ID, password, and credit card details via email or SMS. In fraudulent sales, fraudsters send emails or SMS to the user pretending to be a real online marketplace.
