Prevent Online Store Fraud

Prevent Online Store Fraud

Prevent Online Store Fraud

What Is Online Store Fraud?

In this new digital age everything that was once a simple matter of personal security and discretion has become a battle ground. Today it is not uncommon for people to be prosecuted and in some cases even to have their identity stolen because they did not think that online store fraud was something that they could ever get caught for. Most of the time when you shop online there are no customer service representatives to interact with you to make sure that your personal information is safe, and yet many times these employees do not work very hard to ensure your personal information is safe. Even if they do work hard, there are so many different variables that can cause an online store to be fraudulent or at least not be as secure as it could be.

One such variable is the credit card number harvests. There are many companies online that buy access to people's credit card information and then try and charge them for items that they did not order or even order online. If an online store is not in business one will not know that the store is taking advantage of the person. However this is just one more variable that makes an online store fraudulent. No one wants to purchase a product from an online store with the only thing being that you were never actually present to even order the product. Most people do not want to get their identity stolen but the need to shop safely and have confidence that the online store does not have any of the above characteristics to make them a victim has been made especially clear with the new FTC rules and the implementation of the protections they provide.

As online stores continue to be held accountable for fraudulent activity they will have to work harder to ensure their customers are not at risk. While it may take them more time and resources to get it right, it will be worth the effort because ultimately the end result will be safer purchases. You will always want to shop online from a safe online site and with that being the case the only way to ensure that you are getting what you think you are getting is to do your due diligence and to read the fine print. That includes ensuring that there are no special offers or bonuses attached to the online purchase because these can often be used to increase fraudulent activities.

Types Of Online Store Fraud

In this day and age it is becoming increasingly difficult to stay ahead of the crooks who are constantly on the look out for online stores to prey upon. The internet has provided them with the exact tools that they need to pull of a fast and effective scam. One type of scam that is very common is the ecommerce or online store fraud. This scam is committed by a person who pretends to be an established business who needs funds urgently for some reason. The most common reason given is the inability of a site to attract sufficient revenue in a short time.

Here is how it works. You go online, you see several stores looking for credit cards and apply for one. Within a few days you are given a confirmation about your approval. A few weeks later you receive a bill in your mail box. It is nothing but a collection scam. The scammers have stolen your personal information and have used it to charge your credit card.

Another type of scam is the address verification system scam. This is also a common fraud method where the crooks send you junk mails, threatening that if you do not pay your credit card debt that they will sue you. They pretend to be the credit card company or the bank and request for your address. They either pretend to be someone credible like the bank or suggest themselves as a professional that they deal with all such kind of cases often. They are not asking for your credit card details but instead they are requesting for your address so they can send you spam and junk mails in future. You need to take precaution so as to prevent yourself from falling into the hands of these fraudsters.

Account Takeover

Account takeover online store fraud is one of the biggest scams in ecommerce history. Many innocent online store owners have lost a lot of money to online store scam. Since ecommerce transaction is mostly cash-based, there is a very high risk of people robbing you at your cashier while you're making a credit card purchase.

Account takeover online store fraud is very popular among fraudsters because it's relatively easy and less expensive than other Internet frauds. A lot of business owners believe that they are doing the best thing for their businesses by doing the most aggressive advertising and marketing. Unfortunately, those people forget that online advertisement or marketing is just a tool for attracting potential buyers. Once someone clicks on your ad, they are already in your virtual shop until you close your shop. This is just the tip of the iceberg; many business owners fail to recognize this danger.

If you want to protect your business from online store fraud, you must use an online store security monitoring system that can detect fraudulent transactions in real time. You must also take preventative measures to reduce the risk of getting online store scams. The Internet is full of scams and frauds, so you should be very careful in dealing with online stores. Do not ignore online store fraud because it can cost you everything starting from your business reputation to your physical products and even your life.

Identity Theft

Identity theft is the fastest growing crime around the world, with over one million reported cases. There are many ways for an identity thief to access your personal information and financial resources such as credit card statements, bank account details, and even medical insurance quotes. While all of these things are vital to keeping you on the right track, there are also some things you can do to help prevent it. For instance, if you are shopping online, never provide personal or financial information through a site that you've never visited before, even if the site looks professional. Always remember to check that the site has a security seal from a trusted source.

Another way of preventing online theft is through careful internet usage. Most online stores use email and a secure connection to process credit card transactions. This means that even if someone obtains your private information, you'll still be able to dispute the crime and hold the responsible party accountable. You should also report any instances of identity theft to the Federal Trade Commission or local law enforcement authorities. They will have the tools and resources to investigate your case and bring you justice. It's never too late to start taking preventative measures against identity theft.

Protecting your personal and financial information is the best way to protect yourself from hackers. Make sure you know what you're signing when you fill out forms or give out important information online. Check all boxes that you don't recognize and be aware of any strange numbers appearing on your phone bill, bank statement, or credit card statement. If you're suspicious of a phone number that you don't recognize, don't hesitate to report it to the National Do Not Call List or call your local law enforcement agency.

Credit Card Fraud

Credit card fraud is a very broad term that includes any type of fraud that occurs using a credit card, including purchases made using the card, unauthorized charges made to the card, and any type of fraud that occur in connection with a credit card. The motive may be to gain goods or services, or for monetary gain to another person who is in business with you. A chargeback is a process in which the bank reverses a transaction that the consumer has previously authorized and is not in accordance with their agreement. The bank will attempt to contact the cardholder to see if there is an authorization for the transaction again.

Many types of credit card fraud can be committed, but some of the most common include unauthorized charges to the account, as well as stolen or opened credit cards. If you think that your card has been stolen or used without permission, you should immediately report this to your financial institution and the police so that they can assist you in recovering the money. Other types of fraud include the unauthorized use of passwords and other login information on accounts. If you have forgotten your login information, you should change it as soon as possible. Also, make sure that your credit card numbers are not written down anywhere, because these numbers are often used to access accounts.

A great deal of fraudulent activity can also be committed via text messaging. When you receive text messages that seem to be from your bank or your credit card provider, this should prompt you to contact them immediately so that they can investigate the message. Sometimes, the messages come from someone who does not have a legitimate business. In this case, you should avoid responding because even if the message is from a friend or someone who knows you, it could still be attempted theft or fraud.

Affiliate Fraud

Affiliate fraud refers to any fraudulent or unscrupulous action conducted in disregard of applicable federal laws and regulations, to earn commissions for an affiliate marketing scheme. Affiliate marketing is a system of advertising and selling merchandise or services on the internet via a network of independent or associate retailers and vendors. Affiliates market and sell products or services employing techniques such as search engine optimization, pay-per-click advertising, or ecommerce. Affiliate marketing involves co-branding or cross-marketing rights to retail or service providers.

Some of the most common schemes include: cookie hijacking, where the affiliate platform collects the personal details of the visitor and use them for identity theft; clicking, wherein the affiliate platform collects the IP addresses and the type of browser used by the visitor; article directory submission, where the affiliate platform encourages website owners to submit links to their website, with a link to the advertiser's site; and doorway clicking, wherein the user receives a different page, or 'gateway page,' when accessing different websites via the affiliate platform. Other tactics include using scripts or bots to send out bulk emails, including to hundreds of recipients, and redirecting the targeted visitor to other advertisements or landing pages. Another tactic is for the host to install malicious code on the host's website, which then sends out spam email to hundreds, or thousands, of unsuspecting subscribers. A further tactic is to create bogus emails to trick the target into opening up attachment such as a Trojan virus. These and other tactics are often used by cyber criminals to obtain personal information and financial information of the target business customers.

The Federal Trade Commission (FTC) has been actively policing merchants and affiliates for years for their failure to prevent and adequately deal with affiliate fraud. The commission has developed comprehensive rules and regulations to protect consumers from merchants who do not take reasonable steps to stop their affiliates from engaging in unprofessional and illegal conduct. These include not only requiring merchants to inform customers of the risks posed by affiliate marketing and giving them the opportunity to opt out of being affiliated with the merchant, but also require that affiliates provide a link to the relevant pages on the merchant's site where the consumer can find out more information. In addition, the FTC has issued warning labels to merchants that fail to inform customers of the risks associated with affiliate marketing.

Interception Fraud

Email intercepting fraud is currently causing large difficulties for business owners in South Africa. The most obvious issue is that your company loses out on potential revenue, however there is much more to it than this. Email intercepting fraud puts undue pressure on business relationships because neither party ever feels that they're in any sort of responsibility for what's happening. In many cases, it may even seem like the people responsible are happy about the situation and never actually feel that the emails were misused. This makes the situation worse and more difficult to resolve, simply because it goes without being talked about. The only way that you can truly combat email theft is to ensure that all of your employees understand the risks that are involved in leaking information to people outside of your company.

There are several different ways that this particular type of fraudster works his or her magic, and if you want to make sure that you aren't working against an organized crime ring, you have to be prepared. One of the first signs that an Interception fraudster is about to strike is that the emails keep coming in at all hours of the day. If you've ever been accused of stealing from a bank account, then you know that the longer it takes you to contact the bank and explain the situation, the more likely it is that you'll be found out. It may also be the case that the person who has ordered these emails is known to the local law enforcement authorities, and if this is the case, it is important to be able to get them to stop calling your company for fear of putting your assets at risk. If you can, talk to the local law enforcement authority so that they can put a halt to the calls.

Another serious threat that Interception frauds can cause is the use of passwords and identification numbers. Without proper security features, it is easy for people to access your online banking details, and it also allows them to access other parts of your life without you knowing it. These days, many identity thieves go online looking for passwords and social security numbers, and if you have a weak password and ID number, it is just a simple matter of them getting into your online accounts and making purchases. You can prevent this type of hacking by having strong passwords and protecting your ID and password information whenever you leave the house, and you can take precautions to make sure that your banking details are encrypted and safe from prying eyes.

Triangulation Fraud

For many years now, Triangulation fraud has been used as a means to defraud individuals out of their rightful property or ill-gotten gains. The term itself can be defined as 'an act of presenting one person as an authorized signator of another'. In this case, one would be faced with the possible scenarios where a real estate developer is offering two different mortgages to the same property, one being for a retail value and the other one a residential value, so when it comes time to sell, the owner of the property will present the properties as being valued at two separate sales, when in reality the transactions were one and the same.

Triangulation itself is a rather complicated scheme, which in general, involves the employment of illegally obtained identifying personal information, or stolen credit cards. However, because there's an identity theft component to most triangulation fraud, it's not uncommon for state and federal authorities to aggressively pursue such cases, especially where proceeds have been obtained through fraudulent credit card activity. However, one thing that is often overlooked is the possibility of auction fraud - that is, the illegal act of selling a property after it has already been auctioned. Oftentimes, this is done by owners of the property who attempt to convince potential buyers that the property is higher in value than it actually was, or by individuals pretending to have the ability to buy the property themselves, which leads potential buyers to believe that they have the ability to purchase the property. Another example of auction fraud could be in the form of flipping, in which the seller may be paying less for a house than the actual value, due to the fact that some portions of the house may be uninhabitable.

When a customer makes a purchase from a business, such as a grocery store or a gas station, that person enters into a 'third-party marketplace'. In a Triangulation Fraud example, the act of 'coordination' between the 'coordinators' on both sides of this transaction is what leads to the sale of the property in question. At the end of the day, though, what usually happens is that some aspect of this 'coordination' gets 'lost', and the price discrepancy between the parties results in the sale of the property at a lower price than it should have been sold at. This kind of 'deceptive transfer' can take place in many different forms, and the end result is always the same: the loss of a potential profit for the 'coordinators' involved in the transaction.

PCI Compliance And Your eCommerce Store

By choosing to implement a PCI Compliance policy for your company, you are choosing the best method to protect your financial assets and ensure that your customers' credit cards are properly used. Most people understand that when dealing with sensitive personal information or financial transactions, you will need to take the appropriate steps to protect yourself and your business. However, for many small business owners, PCI Compliance is still unknown. In order to be PCI Compliant, your business must follow certain guidelines and adhere to specific procedures that have been created by the PCI Compliance Association (PCA). PCI Compliance is one of the most rigorous policies in business finance and it can make a significant impact on your business's ability to operate.

When a business chooses to become PCI Compliant, there are several components that they must first meet before they are certified. The PCI Policy will include the methodology of addressing security risks, an assessment of the various threats to a business's infrastructure, and the implementation of a planned process for addressing any vulnerabilities or other issues. If your company does not already use a dedicated credit card processor, then you will need to find one that is PCI Compliant. This will require that your business acquire a credit card processor that meets the PCI Policy's requirements.

PCI Compliance is not an optional process. It must be implemented from the very beginning of a business's development and operations. There are many benefits to implementing PCI Compliance and among them are significant improvements in company protection and peace of mind for all parties involved. If a business is not PCI Compliant, then they are at high risk of being declined credit card processing transactions by their customers. If they are PCI Compliant and are declined credit card transactions, then the PCI Compliance Solutions offered by the PCI Security Standards Council (PSCS) could prove to be invaluable to the business.

Monitor Transactions And Reconcile Bank Accounts Daily

Monitor Transactions and Reconcile Bank Accounts Daily is an action item that can be scheduled to occur at any time. When this item is activated, it will start recording the transactions in the software and then compare them to the charts for the day. It will also compare the historical data for the day to the real-time data for that same day in the software.

Once the software identifies the differences between the historical data and the real-time transactions for that particular day, it will compare those values to all of the historical values from yesterday and two today. At this point, the software will have identified a pattern. If the transaction is found to be identical to the existing transactions for that period of time, then the software will mark that transaction as 'not applicable'. This allows you to choose which transactions should go on your merchant account or not.

You can choose to close certain accounts. You also have options as to whether or not you want to allow automatic rollover of debits and credits from one account to another in the event that the merchant account is closed. Monitor Transactions and Reconcile Bank Account Daily can also be adjusted to restrict the number of credit or debit card transactions from one account to another in the event that the account is closed. Some options provide a specific number of debit transactions allowed, while others allow a set number of debit card transactions per calendar day or a set amount of credit card transactions per calendar day. Regardless of what options you select, this will help you ensure that only those transactions that are relevant to your business will go through your merchant account.

Why Does eCommerce Fraud Take Place?

While it is easy for someone to say that ecommerce fraud is not a big deal, there are plenty of people out there who will testify that it is very real and that it takes place quite often. The sad thing is that people do not tend to get the fact about what constitutes ecommerce fraud until they have their credit cards under surveillance and they have lost money. Many people who are naive to think that they are safe because they use the name of a particular business on their website or they only use credit cards that were issued by a particular company on a regular basis. While this may be true in some situations, it is certainly not the case when it comes to using a credit card to make purchases over the internet.

The first type of ecommerce that is frequently referred to is chargeback fraud. This is when the consumer who have made a purchase on the Internet signs up for a site, but doesn't realize that he or she has already paid for the item. Instead, the seller keeps the money and then tries to sell the same item on an online auction site, or tries to contact the original purchaser and claim that the consumer did not receive the product that was ordered. When the original purchaser either calls the merchant's company or sends a return pack, the fraudster uses the opportunity to collect the fee from the online store. These types of ecommerce chargebacks usually take place at the point of sale, so the merchant must stop the transaction immediately in order to recover his funds and to end the hassle.

Another common type of chargeback takes place when the buyer fails to deliver the item to the seller at the point of sale. Instead of just blocking the transaction, the seller may resort to IP address blocking, which means that the thief will need to use another method to communicate with the online merchant in order to continue the transaction. An example of this would be if the fraudster was using a proxy server to communicate with the store, which would stop any IP address blocks. Preventing charge backs is therefore necessary to ensure that ecommerce merchants are making as much profit as possible.

Scroll down to read our indepth Ecommerce Platforms guide. What you should know, Ecommerce Platforms features, price plans and support. Pros and Cons of Ecommerce Platforms as a ecommerce, everything is explained below.

Overview of Prevent Online Store Fraud

Shopify is a software company that specialises in ecommerce software for small to enterprise level businesses.

Shopify is listed as the best ecommerce software related to Ecommerce Platforms. Shopify was founded in 2006 in Ottawa, Canada and currently has over 6,124 employees registered on Linkedin.

Best ECOMMERCE Solution By Rating

Get our stories delivered

From us to your inbox weekly.

Learn more about Shopify. Try Shopify now