Protect Your Business from E-Commerce Fraud
Common Types of E-Commerce Fraud
Fraudsters are always coming up with new scams, but here are the most common ones affecting online sellers today:
- Chargeback Fraud: A buyer claims they never received their order or the product was faulty, forcing a refund. This type of fraud accounts for 40% to 80% of e-commerce fraud and often results in extra fees beyond the refunded amount.
- Fake Refunds: Scammers use stolen credit cards to make purchases and then request bogus refunds.
- Account Takeovers: Hackers gain access to legitimate customer accounts and place fraudulent orders.
- Card Testing: Criminals test stolen credit cards by making small purchases before using them for larger transactions.
How to Protect Your Online Store
While no system is foolproof, you can significantly reduce fraud risks by implementing these strategies.
- Use Chargeback Protection: Major payment processors like Visa and Mastercard offer chargeback protection services.
- Enable Fraud Detection Tools: Platforms such as Signifyd, Kount, and Riskified provide fraud detection technology. Contact us to explore fraud prevention tools that fit your business.
- Monitor for Suspicious Activity: Look for red flags like multiple orders from different locations using the same credit card.
- Dispute Chargebacks: Don’t accept chargebacks without question. Services like Justt can help you fight them. Need help? Contact our team for expert guidance on chargeback management.
- Verify Payments: Use tools like Stripe to authenticate transactions and prevent fraud.
Get Expert Help to Secure Your Sales
Small businesses can’t afford to lose sales to fraud. While large corporations may absorb these losses, independent sellers need to stay vigilant and proactive.
We offer tailored e-commerce security solutions to protect your transactions and reduce fraud risks. Want to learn more? Request a personalized fraud prevention plan today!
