Millions of entrepreneurs already know the benefits of doing business through e-commerce. With the advent of online commerce, new Internet payment systems began to develop. Unfortunately, scammers began to take advantage of this situation. The highest percentage of fraud is observed in Europe and the USA, as eCommerce is the most developed in these parts of the world. How to recognize scammers and what fraud prevention tools are there? Let’s talk about fraud detection today!
Types of Internet Fraud
There are many types of e-commerce scams. Below are four of the most common.
- Account Takeover
In this type of fraud, scammers obtain a customer’s personal information and then use it for their purposes. To recognize this right away, you need to keep an eye on every suspicious activity on your customer’s account. This is very time-consuming work, so it’s easier to order risk management software with fraud detection.
- Theft of payment data
This is one of the most widespread types of fraud in e-commerce. Criminals use stolen data to make purchases online, and when the cardholder notices this fact, he immediately requests a refund. Chargeback will be requested from the store’s account, which will subsequently badly affect the reputation of the store among international banks. Fraud prevention tools will help you to avoid this from happening.
- Forced chargebacks
It’s a bit more complicated here, since the request for a refund may come from a real buyer. Sometimes such fraud is called “friendly fraud” because the store will not directly confront the customer. Here you have one way out – return the money so that you don’t have problems with banks later. By using the fraud prevention tools, you may reduce the occurrence of such cases.
Why Do You Need an Anti-fraud System?
Whether you’re a business owner or a buyer, the Internet is a great platform for you to accomplish your goals. Online you can sell, buy, advertise, compare, pay, and many more other perks of eCommerce. And it would all be okay if it weren’t for scammers and their many schemes to take your money.
An anti-fraud system is a tool to help you safely conduct your business and sell your products and services securely. Covery risk management software will also help protect your customers from leaking their data and stealing their money.
Covery Fraud Prevention Tools
- Trustchain for fraud detection;
- device fingerprinting;
- machine learning and rule scenarios;
- anti-fraud system in-depth analysis;
- automated decision-making and advanced reporting;
- kyc automation;
- and many more fraud prevention tools.
Covery provides this all, and much, much more. It enables online merchants to minimize their losses from chargebacks, enables them to perform automated KYC/AML checks. It also helps prevent account takeovers and identify risky transactions on the fly. Contact Covery to learn how it can help safeguard your business!