“There are many types of eCommerce fraud, all of which are extremely concerning for consumers and online businesses alike. eCommerce fraud is widespread: According to econsumer.gov, in just three months — January to March 2019 — there were 5,305 eCommerce fraud reports in the U.S. In addition to being rampant, eCommerce fraud is constantly evolving, as cybercriminals develop new techniques to sidestep the security measures deployed by online business websites.”
With all this in mind, it is important for eCommerce business leaders to stay well-informed about eCommerce fraud and patch whatever vulnerabilities may exist in their security frameworks. This is where the infographic below, How to Prevent eCommerce Fraud, will prove helpful. The infographic presents a high-level overview of common types of fraud, and several specific steps online businesses can take to reduce the threat.
As the infographic points out, enhancing online security not only helps to deter fraud but also serves online businesses in more constructive ways. For instance, we have reached the point where simply having an HTTPS website is immediately reassuring to many if not most online consumers — the fact that Google has been labeling non-HTTPS sites “Not Secure” on its Chrome browser since 2018 has gone a long way toward reinforcing this perception.* When customers perceive that an eCommerce store is secure, they are naturally more inclined to order and to order repeatedly.
In a similar way, when an eCommerce business requires customers to use a complicated password and change it periodically, they may feel some initial irritation — but once those customers step back and reflect, they will realize that the policy is there to protect them by keeping their sensitive data as secure as possible.
Because data breaches have become so common, so massive, and so widely publicized in the media, public awareness of — and fear of — cyberattacks has never been greater. If your eCommerce business has shied away from implementing security practices out of fear of shopping cart abandonment, those fears are most likely misplaced.
The key to preventing eCommerce fraud is never to become complacent. Some organizations think, for instance, that simply converting to HTTPS is enough. It isn’t. While HTTPS is practically essential — table stakes, if you will, in the fraud prevention game — much more needs to be done to help create a solid barrier against cybercriminals. As the infographic says, implementing as many of the fraud prevention activities as possible is the surest way to help tip the odds strongly in your favor. For more information and insights, please continue reading below.
About the author
Dori Bright is Senior Vice President of Marketing Intelligence and Small Business Market Development at Fiserv, a leading global provider of eCommerce payments and mobile payment solutions, helping businesses connect with customers through physical, digital, and mobile payment experiences that drive commerce.
Infographic created by First Data