It’s an unfortunate reality, but ecommerce fraud and scams are becoming more rampant. Combating online fraud is something that all ecommerce business owners have to deal with at some point. That’s why it’s so important that you know how to spot it and protect your business.
How can you prevent ecommerce scams? Let’s take a look at the most common types of fraud and some of the best tools to help prevent it.
Common Types of Ecommerce Fraud
Technology has advanced quickly over the last decade and so have criminals. To keep your ecommerce business safe, be on the lookout for the following scams:
Refund Fraud – Refund fraud happens when someone makes a purchase or an overpayment with a stolen credit card and then request a refund via an alternative method because they closed the card account.
Account Takeover Fraud – This is a form of identity theft in which the fraudster gets access to a victim’s bank or credit card accounts (through a data breach, malware, or phishing) and uses them to make unauthorized transactions.
Sleeper Accounts Fraud – Criminals have begun creating accounts and intentionally keeping them inactive for period of time – perhaps 90 days – leaving accounts dormant, or asleep. Then, they begin using the accounts for fraudulent activity, allowing them to work around rules or alerts that are targeted at brand new accounts.
Phishing – This type of fraud is a common cyber attack that is easily preventable. Emails are sent to random people asking for their user ID, password, and credit card information under the guise of a company they may already be using.
Card Testing – This happens when criminals create and test credit card numbers to see if they work for online purchases.
Friendly Fraud – Also known as chargeback fraud, this type of criminal activity happens when someone makes a purchase, and then, after receiving the items, they ask for their money back because their card was stolen.
7 Apps to Help Keep Your Online Store Safe from Fraud
The following are some of the best apps to protect your ecommerce business from online fraud and scams.
#1 – Subuno
Subuno helps reduce fraud and chargebacks, automates fraud detection and checks, and allows merchants to customize the solution to specific needs and existing fraud check processes. Subuno offers tiered pricing from a free option up to $19 per month.
#2 – Signifyd
Signifyd is an app that provides chargeback protection for Shopify sellers. The app leverages big data, machine learning, and domain expertise to provide a 100% guarantee against fraudulent chargebacks on every approved order. When a customer places an order, Signifyd automatically reviews the order and tells you whether to ship it or not. Standard pricing for Signifyd is 1% of guaranteed orders.
#3 – FraudLabs Pro
FraudLabs Pro protects businesses from criminals by screening all order transactions for fraud patterns. FraudLabs has tiered pricing that starts with a free Micro Plan and increases from there depending on the advanced features chosen.
#4 – Simility
Simility helps merchants prevent fraud in real-time with machine learning, big data analytics, and data visualization capabilities. With Simility, you’re protected from account takeover fraud, new account fraud, wire fraud, and identity theft fraud. You have to contact Simility for pricing, but they do offer a free trial.
#5 – DupZapper
DupZapper is a solution that provides a simple way of detecting online fraud from multiple fake accounts using device identification and machine learning algorithms. Much of online fraud is linked to criminals who create multiple accounts to escape detection. DupZapper identifies them and protects merchants. You can sign up with DupZapper for a 30-day free trial. Contact them directly for pricing since it isn’t listed on their site.
#6 – Kount
Kount’s fraud management solution protects merchants through transaction screening, artificial intelligence, auto-decisioning, and workflow management. Kount provides an easy-to-use interface that doesn’t affect the checkout process, reduces the need for manual reviews, and prevents chargebacks. Their pricing isn’t listed, but you can contact them for an estimate.
#7 – Riskified
Riskified provides fraud and chargeback prevention technology, using behavioral analysis, elastic linking, proxy detection, and machine learning to detect and prevent fraud. Riskified offers tiered pricing. Contact them directly for pricing information.
How Will You Protect Your Business from Fraud?
Now that you’re armed with the information you need to protect your online business from fraud and scams, start implementing these apps today. While you’re at it, take a minute to read this guide on cyber attack prevention for small businesses to further protect your business.
Let us know which apps you choose to keep your ecommerce store safe in the comments below.