Today more than ever, online commerce occupies a very important place in the day-to-day world economy. In fact, according to BigCommerce, 22% of global retail sales will be due to e-commerce by 2023. These numbers continue to grow with the expansion of the internet.
In view of this growth, it is necessary for all of us to know how to make safe purchases on the internet and have a satisfactory digital experience.
Every day, the user experience or UX is more important and online security is one of the great concerns of Internet users, who distrust brands that do not assure them that their data is well protected.
However, it is also the users’ responsibility to use good practices when shopping online so that their personal and financial details do not fall into the wrong hands.
Our tips for safe online shopping
As electronic commerce grows worldwide, new ways to scam, steal data and identities are also born. Therefore, as a client, it is very important that you take care of yourself on the web. You can achieve this by applying these tips:
- Protect your computer: before buying make sure your computer is secure, updated and that you have a good antivirus installed.
- Check the security of the web page – This means making sure the URL is secure (https).
- Read customer reviews and opinions on their social networks, forums and posts. This will allow you to know an unbiased opinion of the product.
- Compare prices: If that is not the only website that sells the product, check the prices. Too low a price is a bad sign.
- Read the small print: find out about the terms and conditions of purchases and read the legal information of the store very well. This will also allow you to return or exchange the product in case of damage.
- Use secure payment methods: the store should have a payment button and a legal and recognized gateway or payment method, such as PayPal, for example.
- Use a secure network: Information transmitted over public connections can easily be captured by a hacker. Therefore, it is best to make purchases or operations through a secure network.
- Give only the necessary information: if you are surprised that they ask you for some personal information to make the purchase, do not do it and check if you are in the right place.
- Periodically review your credit card movements: if any of them seem suspicious, contact your bank, you may have been the victim of identity theft.
- Don’t fall for malicious emails: check the sender, links and attachments of your emails. This is one of the most used routes for data theft.
- Stay informed: New ways to scam and steal sensitive data are constantly emerging. Stay updated and in this way you will be warned not to become a victim.
- Check the means of contact of the store: physical address, telephone and email must be available on the website to be able to contact those in charge in case of doubts or questions.
5 most popular forms of electronic fraud today
According to Forbes , the current growth of electronic commerce has been the opportunity for new and familiar forms of fraud that find victims in both merchants and customers. The most popular are:
Chargebacks or chargebacks: It is one of the most expensive types of fraud an online retailer will experience. It’s a technique that often leads to additional fees, loss of inventory, services, and may even result in them not being able to accept a specific type of credit card. Chargebacks can be the result of criminal or amicable fraud. In either case, they are expensive and require an inordinate amount of time and cost to resolve.
Friendly fraud increases as an online retailer or e-commerce site generates more revenue and can account for 40% to 80% of all fraud losses. Also known as First Party Fraud, it occurs when customers request refunds from their issuing banks, claiming that the transactions on their credit card statements are fraudulent. Instead of contacting the business where a purchase was made, the consumer simply calls their bank, which, lacking verification information, refunds and issues a chargeback to the business. It can be accidental or intentional.
Credential stuffing is the use of bulk login attempts to verify the validity of stolen username/password pairs. This information is used to take over accounts.
For its part, Streaming Potluck is a technique in which each member of a group brings their account to a streaming service and shares it. Each member of the group has access to all services. Depending on the service provider’s business model, unauthorized account sharing may cause loss of revenue.
Account Takeover (ATO) is widespread in all areas of eCommerce today. The online gaming industry relies on real-time approvals of small amounts to keep players engaged. These transactions must be approved almost instantly and at scale for a game to be financially successful. Fortunately, there are fraud prevention solutions that can analyze a transaction in less than a second to see if it’s real or fraudulent. From 2016 to 2017, account acquisition losses (ATOs) increased 122% and reached $9 billion in 2019.
If you are a merchant and want to give your customers the safest and most satisfying experience, make sure you:
- Have the legal certificates that guarantee your activity in the country where you are.
- Offer several payment options and use reliable and recognized gateways and platforms.
- Keep your social media profiles up to date and provide quick and friendly responses. In this way, you will have more confidence from potential customers.
- Make sure that your website works perfectly , that it has no loading or content failures.
- It has a good customer service and crisis management team. In the event of making a mistake or falling victim to fraud, it is very important to respond to customers and speak honestly.
- Be clear with the information on the products, brands, prices, and legal conditions of shipping and returns.
Without a doubt, e-commerce is a fast and efficient way to buy and sell on the web, but it is also the window for malicious people to steal data and money from both customers and stores.