Online shopping is being adopted widely all across the globe because of the ease and flexibility that it offers. However, like any good thing, online shopping, too, comes with a downside. One of the major emerging concerns that has been getting bigger with the widespread of online shopping is the high possibility of fraudulence both for the consumers and the businesses dealing with online transactions.
What are the most common types of e-commerce fraud?
Also known as friendly fraud, chargeback fraud is when a user makes an authentic purchase online using a credit/debit card, but reaches the bank to make false claims like the order they placed either arrived defected, or was never delivered at all, or even that the order was never placed by them. This puts in a request of refund from the card user’s end which is catered to by the bank sometimes, causing losses to the merchant involved who even dispatched the product and still has to return its payment.
Card Testing Fraud
The most common kind of fraud, this tactic involves the fraudster gaining access to card numbers via stolen cards or data available on illegal sources. Having access to this information is like tapping a gold mine for fraudsters, which is exactly what they do – start making minor purchases online to test the limitations of the card and then jumping to pricier purchases, once they are sure that the card works. Mostly, the initial minor purchases used for testing the card go unnoticed by the card owners, until an expensive purchase is made, and by that time, they have become victim to a significant amount of money lost to card testing, which they may even claim against chargeback, causing losses to the merchants as well.
Account Takeover Fraud
This scheme involves fraudsters hacking into user accounts on different e-commerce websites, with pre-stored card information which they utilize to make purchases not only on that online store, but also use the card information found there to shop elsewhere. This type of fraud not only costs the users, but also compromises the reputation of the merchant, who is going to lose existing and potential customers due to lack of trust on its e-commerce platform and hesitance in signing up to shop through it since the case of account takeover fraud proves that the platform is not secure enough to share sensitive payment information required to complete a purchase.
Under this scam, the fraudster shops online with a stolen credit card and then contacts the merchant to request a refund upon order cancellation. However, they ask for the refund to be deposited into another account, claiming that the account against the card they paid with is currently not functional. This allows the fraudster to enjoy the refund amount while the victim has to bear the bill of the actual order that they would not even be receiving since it was cancelled.
With so many different kinds of e-commerce out there, it seems almost impossible to be able to trust digital payment platforms again or shop online with peace of mind. However, where there is a problem, there is always a possible solution, too. And the solution to cyber fraud is in one word, one tap: QisstPay’s One-Click Checkout – offering you and your consumers the most secure online shopping experience under the Payment Card Industry Data Security Standard (PCI DSS) compliance and ISO certification.
How Does One-Click Checkout Ensure a Secure Environment for Online Payments?
In collaboration with third-party fraud prevention and cyber security services, One-Click Checkout incorporates multiple backend features in its payment platform that ensure the highest degree of security throughout the payment procedures. Here are a few:
• Crowd-level bot and fraud ring alerting
• Digital Identity Solution
• Behavioral attributes for AI/ML models
• API-delivered solution leverages actionable insight
With QisstPay’s 1-Click Checkout making sure that your payment & checkout experience is loaded with the highest and most complex security checks, you do not need to worry about any e-commerce frauds plaguing the virtual world of shopping. Get right back to your shopping cart and check it out with 1-Click: safer than ever!