Since the onset of the pandemic online fraud has become more prevalent than ever. In fact, according to AusPayNet, ‘card-not-present’ (CNP) fraud now represents almost 85% of all card fraud, costing the e-commerce industry close to half a billion dollars each year.
For business owners who deal with online transactions every day this fact can seem concerning and overwhelming. However, luckily, there are many ways to mitigate the risks associated with e-commerce fraud.
Types of online fraud
While businesses both nationally and globally have reported an increase in fraud since COVID-19, those who’ve implemented fraud prevention strategies experienced a reduction in incidents, response costs and penalties as a result of fraud. So, how can you ensure your e-commerce business does the same?
The first step is gaining an awareness of the common online scams that could pose a threat to your business. Here are a few.
1. Money forwarding fraud or overpayment scam
This type of fraud has become more prevalent since the onset of the pandemic. Money forwarding can leave your business financially exposed, when a scammer overpays for a transaction, using a stolen payment card. The scammer will then ask you to send some or all of the funds to a bank account. The likely outcome is that your business is liable for the full amount of the original transaction as well as any additional chargeback fees. The key lesson here, if you’re questioning…