eCommerce is growing significantly and the year 2016 is going to be the stellar year in eCommerce because an eCommerce website Alibaba’s single day sales of $ 17.8 billion have broken the records. The global retail eCommerce is expanding faster day by day and it is expected to reach $4 trillion by 2020. It is growing and offering new opportunities to the merchants where it is also giving more opportunities for fraudsters and this is why the number of fraud attacks has drastically increased. The increasing mobile fraud, online payment fraud and other such frauds are creating an alarming situation for the businesses. That’s why every merchant or business needs to pay more attention to the changing global eCommerce trends as well as to frauds to combat risks, protect transactions and business. Read on to learn about the mainstream fraud trends in global eCommerce to ensure your business is protected.
“Clean Frauds” will increase
In this digitized world, business has found new ways to catch the potential customers, giving an ultimate customer experience by making the online system fast and secure. Similarly, criminals have also found new ways and opted new methodologies for the fraud attacks. This is why frauds attacks have become more sophisticated and organized. Now it is really hard to identify the fraud which is known as ‘clean Fraud’. Frauds are becoming sophisticated and even the merchants are paying amount of charge back as well as high fees to institutions for stolen goods because they fail in identifying the frauds.
Threat of merchant Identity fraud in currency exchange
The trend of creating fake merchant account just like the original business account is becoming popular. The criminals become smart and now they create fake accounts similar to the original account of a currency provider and offer services to the customers. When the users search for the best exchange rates they trap them. Creating fake online merchant accounts is growing significantly and such frauds are drastically ruining a company’s image and customer experience. But it is really hard for the companies to identify and detect who is doing so. It is suggested to use the services of an experienced money changer when ordering currency online.
More Friendly Fraud
It is also known as charge backs and it is on rising in the global retail eCommerce. The small merchants and mobile merchants are facing such fraud issues and therefore they have lost a huge amount just because of stolen merchandise and credit card fraud. The customers said that they didn’t receive the ordered item so they claim the refund. In this way, the companies are not only incurring the charge backs but also paying a true cost to the financial institutions for the stolen goods. So credit card fraud and friendly fraud are becoming are serious problems for the businesses. However, experts are introducing advanced fraud prevention system and solutions to fraudulent transactions. If you’re looking for the best currency exchanges rates for currency conversion then it’d be better to choose a reputed and trusted money change specialist to reduce the fraud risks.
Fraud Prevention and Customer Experience
No doubt IT experts have introduced and still introducing advanced methodologies and solutions for fraud prevention. But still some problems are creating a conflict between the fraud prevention solutions and company’s policies. For example, businesses are opting for the fast and secure online system to ensure the ultimate user experience to their clients. But several layers of fraud protection programs are slowing down the system and transaction process which is, of course, giving a poor user experience to all clients.