Why Should You Invest in Ecommerce Fraud Protection Software?
As an eCommerce business, your priority is to protect your consumers and business against potential eCommerce fraud. But with eCommerce increasingly becoming digital, nefarious actors now get newer opportunities to steal private information.
So, besides malware solutions, using fraud management systems has become a major concern for every eCommerce store. It helps detect & protect against fraud while managing chargeback disputes. If you want to learn how to combat and reduce fraud on your online store, let’s first learn what eCommerce fraud is.
The Need for Protecting Your eCommerce Against Frauds: An Introduction to eCommerce Fraud
Ecommerce fraud occurs on the eCommerce platform. A few forms of such fraud include using a fake or stolen credit card, false identity, or ad fraud. When a consumer engages in fraud, a retailer has to absorb the cost. As a result, it negatively affects the business’s revenue.
One reason why eCommerce fraud is pivotal these days is prosecutions are rare. So, integrating a premium fraud detection & prevention management tool is integral. This helps eliminate fraud on the platform while reducing the overall impact on the revenue. Although there are endless schemes a fraudster implements, here are the most common types:
#1 Cookie Insertion Fraud
Cookies are the most crucial medium of tracking in the affiliate marketing industry. The prime objective of cookies is to store details of transactions and user activity. In affiliate marketing, they track the affiliate’s data, thereby monitoring the traffic sources. The affiliates get paid for traffic for advertisers.
The affiliates insert cookies into the system or browser. Fraudsters implement cookie stuffing to stuff cookies like JavaScript, zero pixel images, pop-up advertisements, and more.
#2 Click Fraud
Click fraud is a popular type of ad fraud that deliberately clicks on PPC ads. The prime objective of this type of fraud is to increase the site revenue or exhaust an organization’s ad budget. It occurs when someone exploits digital advertisers by repeatedly clicking on the PPC ad to generate fraudulent revenue.
#3 Ad Injection
It’s when an ad gets displayed on a publisher’s website without their permission. The type may affect the existing ad spaces by implementing fraudulent ads rather than real ones.
#4 Triangulation Fraud
This fraud is when malicious actors establish a replica or fake website, enticing buyers with cheap products. At times, these websites might appear in the ads or get sent to customers’ emails via a phishing attempt.
#5 Domain Spoofing
It’s when fraudsters disguise the real URL for the premium website. It means they are ticking users, advertisers, and publishers. Through domain spoofing, fraudsters can sell publishers’ ad space, and publishers won’t get any revenue.
Other types of eCommerce ad frauds include
- Push-Ad’s Fraud
- Adware Fraud
- Coupon Fraud
eCommerce Fraud Detection Tool – How to Select the Right One?
Malicious actors are becoming more sophisticated, so combating fraud with a one-size-fits-all solution cannot be a standalone answer. There are firms that monitor eCommerce frauds using eCommerce fraud prevention tools. But not all of them can suit your business requirements. Thus, the secret lies in selecting the right detection and prevention tool. But before factoring in the determinations, here’s what fraud protection software does.
Ecommerce fraud protection tools’ability to track user & transaction details is valuable pertaining to disputing chargebacks, return fraud, and friendly fraud. The software also improves authentication security to protect user accounts.
This fraud protection software gets designed keeping in mind the ability to monitor and assign risk scores. But there are other key aspects worth selecting:
- Data Enrichment
This process matches documents one has and connects them to the external database – for instance, a loyal customer’s email credentials. It allows you to learn more about the customers without asking them to add more information while mitigating fraud risks.
- Personalized Rules
When selecting a fraud detection tool, ensure that it allows blocking specific actions. A personalized option means keeping your customers and business secure.
- An ML-Driven System
A tool having machine learning implementation is quintessential in your arsenal. It may suggest risk rules based on your customer’s historical data.
- Reverse Social Media Feature
It’s an effective & popular weapon in the fight against fraud. Learning whether your customers have social accounts will help identify them. At the same time, it also reduces the dangers of onboarding fraudsters with a malicious lack of social presence.
Protect Your eCommerce Business against Fraud with Virus Positive Technologies
ECommerce fraud is ever-evolving, given that fraudsters leverage advanced strategies and modify them each year. So, implementing security measures to protect against eCommerce fraud introduces friction in your customer’s shopping experience. It’s also beneficial to your businesses & your customers.
You can leverage eCommerce fraud prevention solutions with us at Virus Positive Technologies. Our tools help you boost sales, generate revenue, and increase customer loyalty & retention rates. With our solutions, we promise to assist global eCommerce establishments in recovering 90% of their lost revenue. We also introduce sought-after affiliate marketing compliance monitoring solutions to protect your brand.
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