If you are running an eCommerce business, chances are you have been the victim of some sort of fraud. Scammers are creating more sophisticated ways of navigating certain businesses’ fraud prevention strategies, finding out how to best impersonate real customers. But how do they commit these acts of fraud, and how can they get out of it. To start, there are basically 2 types of fraud that can get you in real trouble, so have a look at them and take care of it.
Ethoca friendly fraud prevention is not the best for e-commerce businesses. Also known as chargeback fraud, it occurs when a consumer (or scammer) makes an online purchase with a credit card but then requests a chargeback from the issuing bank after receiving the goods or services. The consumer can invoke damaged goods or undelivered products as a reason for reimbursement. The attacker is, depending on the original payment method, the merchant may be held liable for any chargebacks. So, as an eCommerce business, you have lost your assets and your money.
However, chargebacks are sometimes legitimate, and Ethoca friendly fraud prevention can be unintentional. Maybe the goods were damaged or not delivered. Either the consumer does not recognize the merchant on the credit card bill orhas forgotten that he made the purchase.
Many e-commerce companies operate an affiliate marketing program. Affiliate Marketing is an advertising method where online publishers can earn money by placing links on their websites. Links can direct customers to a product. Unfair transactions that appear legitimate are known as clean fraud, and it is becoming an increasingly problematic type of transaction for e-commerce businesses. This is because the transaction is less likely to be flagged or appear on a denied list for known fraudulent accounts. For clean fraud, crooks typically use stolen credit card information to impersonate the real cardholder.
To make this fraud seem genuine, scammers will persuade account holders to make a purchase through a bogus website or by intercepting messages between the parties to the transaction. Scammers can then use this data to make a purchase.