With 76% of US adults shopping online, the annual retail e-commerce sales of 2021 passed $4.9 trillion worldwide and are expected to reach over $5.5 trillion by the end of 2022. Although it’s suitable for the e-commerce sector to experience a boost in its revenue, there has been a growing concern about the online shopping industry. Many retailers have witnessed fraud on their websites, which impacts their sales and revenue as they experience much more losses than gains due to various fraudulent activities.
As it’s an alarming situation for retailers, we thought of talking to someone from the marketing industry to guide retailers on identifying these online frauds and keeping their website’s data safe from these fraudsters. So, we spoke to Faisal Abidi, Co-Founder of RNF Technologies, a company that helps businesses with digital marketing, web/mobile app development, and gaming app development solutions.
RNF Technologies’ Faisal Abidi Shares Warning Signs Of Fraudsters
Before discussing the tips for retailers to prevent their websites from fraudulent activities, they need to be vigilant about their website’s performance. Analyzing the website’s actions is crucial in knowing the consumer’s persona and identifying fraudulent purchases. Faisal Abidi, RNF Technologies, highlights a few points that can help identify fraudulent activities.
- Low-Value Orders
Usually, fraudsters make small initial purchases to confirm the functioning of their stolen cards or card information. If you notice someone making small purchases like around $1, you, as a retailer, need to dive deeper into their shopping pattern.
- Heavy Order Volumes
Once these fraudsters confirm their stolen cards, they will start making massive purchases as the money spent is not their own. Their purchases will be frequent due to fear of losing their credentials.
- Variety Of Credit Cards
As these fraudsters have different card details, they will use other cards for frequent purchases to avail most of the dollars before the owner knows about it. Sometimes, fraudsters check for multiple cards as some cards have multi-step authentication security, which doesn’t allow them to make purchases, resulting in declined transactions.
- Odd IP Address
Sometimes, fraudsters place several orders from the same IP address or suspicious orders from an IP address in an unfamiliar location. If, during analysis, you come across some odd IP addresses, dive deeper to know about the buyer’s details.
As we have discussed warning signs, let’s learn about the fraud prevention strategies suggested by Faisal Abidi, who is also associated with Phonato Studios.
Fraud Prevention Strategies By Phonato Studios’ Faisal Abidi
- Review Risky Orders Manually
As e-commerce software can identify risky orders, one needs to review them manually and contact the buyers to know their legitimacy. If there are low order placements, heavy order volumes, usage of various credit cards, and odd IP addresses, there’s a strong possibility that it’s a fraudulent transaction.
- Set A Limit To Order Numbers
One can limit the number of purchases by an individual to prevent heavy orders from frauds with their stolen cards. It will restrict these fraudsters from making fraudulent purchases on your website, highlights RNF Technologies’ Faisal Abidi.
- PCI Vigilance
Faisal Abidi, RNF Technologies, highlights that all e-commerce businesses must meet Payment Card Industry Data Security Standards if they’re safely processing online payments.
These PCI compliance standards include:
- Regularly updating the default password for software and systems
- Encryption of cardholder data across open and public networks
- Utilizing antivirus software to control malware attacks
- Restricting the number of employees who can access cardholder data
- Regularly upgrading online safety systems
These are a few quick strategies shared by RNF Technologies‘ Faisal Abidi that can help retailers to keep their businesses safe and away from online fraudsters.
