Millions of people globally have discovered the world of online mobile shopping during the Covid-19 Pandemic. Due to lockdown, physical stores had to quickly focus on their online strategies to adapt to the changing retail landscape.
For many consumers it is now hard to believe there was a world without the presence of e-commerce behemoths such as Amazon.
While the volumes of e-commerce transactions is growing, so is the prevalence of fraud. It’s the cross-border angle though that is proving to be a problem area. Studies have shown that international online payment frauds occur more than 2 and half times than that of domestic channels.
And the same goes for mobile as well. Brazil, Nigeria, Indonesia, South Africa and Venezuela find themselves amongst the top-ranked countries for mobile fraud. Companies within those countries are increasingly turning to companies like ours to help protect their customers from fraud. So how do we do this?
E-commerce fraud encompasses a wide range of deceptive activities aimed at defrauding online businesses and consumers alike. Below we have listed some of the most common types of fraud:
The costs associated with e-commerce fraud are not to be underestimated, affecting both retailers and consumers in profound ways.
Costs For Retailers – For e-commerce retailers, the financial repercussions of fraud can be staggering. Retailers are often the primary target of fraudulent activities, which can result in substantial monetary losses:
Costs For Consumers – E-commerce fraud also exacts a toll on consumers. When fraudulent activities occur, it is often consumers who bear the immediate financial burden:
Reputation Damage – another significant consequence of e-commerce fraud, affecting both retailers and the e-commerce industry as a whole. When consumers perceive an online retailer as being vulnerable to fraud or lacking security measures, trust erodes rapidly. This has a ripple effect on the entire e-commerce ecosystem:
The first step any e-commerce website needs to take is to ensure their customers are who they say they are. This is critical for every transaction and not just at the point a new client signs up or creates an account.
Using real time mobile network operator data, TMT Analysis works with leading E-commerce and Social Networks globally to help verify and authenticate user identity, whilst delivering a low friction and highly reliable customer onboarding process.
Our Verify Protect API alerts businesses when a Sim-Card Swap (or Sim-Swap attack), Call Divert or Port-Out is identified on a mobile device, raising awareness to possible fraudulent activity through mobile number validation. Our Verify On-boarding API can allow to you seamlessly validate important customer data such as name, address and mobile number during your on-boarding process.
Time is critical, and something customers around the world value, which is why everything we do is aimed at verifying a customer in the blink of an eye, well fractions of a second to be precise. All of this is aimed at helping our clients offer a seamless customer experience whilst also protecting them from fraud.
The key is not to block legitimate transactions. Nothing destroys the customer experience as much as mistakenly preventing buyers from purchasing goods and services they truly want.
To combat e-commerce fraud effectively, businesses must prioritise security measures and stay vigilant. Implementing secure payment gateways, robust authentication methods, and proactive fraud detection systems are crucial steps in safeguarding against the main types of e-commerce fraud.
Additionally, educating customers about online security and the dangers of phishing scams can help create a safer online shopping environment for everyone.
Mobile devices can be a hotbed for fraud but it definitely does not need to be. Our data helps verify users, detect fraud, and improve the user experience worldwide. Ultimately, we reduce fake accounts and increase conversions.
Speak to us today about how TMT Analysis can help your business.
Last updated on September 18, 2024
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