It is undisputed it that the next frontier of selling lies with the world of e-commerce. Recent studies suggest that the worldwide market for e-commerce is expected to be worth $2.4 trillion. This is an exciting and staggering number. Opportunities for growth are enormous, however are the risks and fraud. As an online retailer you are likely to be eager to share in the revenue from this value. This is why it’s crucial to think about your online solutions to fraud.
The link between increasing online sales and growing e-commerce fraud on the internet can’t be overlooked. The positive side is that there are concrete actions and practical solutions that you can take now to ensure that you’re utilizing the most effective e-commerce options.
An upcoming World pay study provides interesting opinions of merchants about how best to limit the rise in e-commerce fraud. The Fraud Trends report for 2021 reveals that the majority of merchants realize the potential for data analytics to be more effective however more work has to be completed to make use of social media in a way that is effective and more information is needed on the risk of mobile and e-commerce fraud transactions.
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A look at e-commerce fraud
The World pay study was based on the results of 200 people who were contacted via social media, email, and also at the Merchant Risk Council Conference in Las Vegas 2016. In addition, the data was gathered directly from interviews conducted with senior executives from six of the largest E-commerce retailers.
- Mobiles are more risky although mobile is acknowledged as a more risky, there’s not a consensus as to how to handle this risk. According to the data of the survey, 59% of people believe there is an increased risk. However, only 33 percent of merchants have been treating mobile transactions in a different way.
- Data is crucial Most respondents acknowledge that although they would like to have more information and information about transactions, they’re not making use of the data they currently have access to its fullest potential. In reality the majority of people gather data that they do not use.
- Future technology is at the forefront 93% of those surveyed stated that they are contemplating and planning ahead. Companies are keen to learn more about the latest technologies and ways to stay ahead of scammers.
This underscores the necessity for merchants to develop and adapt to the market’s changing. This study has shown that the majority of merchants are making plans for the future, however, the study found that the majority of respondents are not making use of the information that is currently at their disposal.
Taking Action Against E-Commerce Fraud
The next step is to identify where areas of weakness are in your company’s security measures for preventing on e-commerce fraud. Based on the data presented within Fraud Trends, 2021, a few important questions you should inquire from your company’s management and fraud prevention staff should include:
- What are the mobile-based transactions that compare to the transactions we make on e-commerce? Are we seeing a connection in the number of frauds attributed to these types of sales? What are the best ways to deal with the expected growth of online shopping?
- From the data we’re collecting what data are we utilizing and what’s not? What is our process for analyzing the data? What is the best way to gather and share this information to protect against e-commerce fraud?
- What are we doing with modern technology to avoid e-commerce fraud? Which technology are we investing in order to guard ourselves against sophisticated fraudsters? Are we in a state of responding to fraud or are we active in safeguarding our company from the threat of fraud?
The only way to be prepared for the explosive growth of fraud and sales through e-commerce is to examine what you’re doing now and take the necessary actions to upgrade your strategies.
Make sure you have an end-to-end solution that offers the front-end as well as back-end analysis and support could safeguard your company from clever fraudsters as well as outright criminals. If you have the answers to the questions above make you nervous get in touch with us to learn more about the ways Chargeback Expertz can help your business be secure today.