Online payment fraud impedes e-Commerce and m-Commerce development

November 10, 2016
Enter email and subscribe

Thank you for subscribing to our newsletter

As a growing number of merchants transfer their products and services online, using the Internet’s vast resources to grow their audience base and expand trade possibilities, new types of online credit card fraud arise to take advantage of the digital space and its users. The new generation of criminals relies on malware and spyware to steal personal data and banking details, seeking to utilise new technologies to outwit even the most diligent consumers. To counter these new threats and neutralize risks of fraudulent transactions or data theft, ECOMMPAY offers e-Commerce merchants the latest payment fraud detection technologies and anti-fraud security measures.

Friendly fraud

One of the most popular and widespread scams, commonly referred to as “friendly fraud”, affects the majority of online retailers. The principle is simple: the customer cancels payment by credit card or bank transfer immediately upon receipt of the purchased goods. This type of payment fraud is challenging to prevent, because it is impossible to trace at the point of purchase. ECOMMPAY therefore advises merchants to create a clear and straightforward returns policy, including information about product guarantees, timelines, requirements, and costs, to significantly reduce instances of friendly fraud transactions.

Forex and Binary Options vulnerabilities

Interest in the financial markets grows daily, attracting a large number of new traders. As with any large industry, Forex and Binary Options has attracted a number of dishonest traders hoping to use fraudulent means, including poorly formulated contracts with vulnerable brokers and the illegal withdrawal of funds, to make a quick profit. To avoid falling victim to criminal activity, brokers should collaborate exclusively with trusted payment service providers, who will be able to advise on industry specifics and the associated legal aspects.

Developed in-house through collaboration between technology and payment specialists, ECOMMPAY’s solution is the highly efficient risk management system FraudStop, which incorporates the company’s sophisticated technologies to automate the prevention of fraudulent transactions. FraudStop has been specifically engineered to analyse customer data (ie. history, profile, location, IP address and proxy, etc.) to avoid the risk of unauthorized payments. When a customer clicks to begin the transaction process, FraudStop instantly checks across a range of factors to authenticate the customer, the payment card, and the customer’s bank account. The system is updated regularly to neutralize the new threats and techniques fraudsters attempt in hopes of duping even the most advanced risk management systems.

Attacks on m-Commerce

m-Commerce is a swiftly expanding market, but user payment preferences have taken on a new character. Rather than accepting the sophisticated, complex payment process as due diligence, mobile users prefer speed and convenience, wishing to complete a purchase after a few clicks. This proves a fertile breeding ground for various scams aiming to acquire consumer funds and personal data. At present, mobile payment channels are extremely vulnerable, due largely to the fact that the majority of companies still use uniform protection mechanisms across various devices. Experienced payment service providers can assist in ensuring that the anti-fraud measures offered clients have the same high levels of success on different devices.

ECOMMPAY’s payment experts predict that, though traditional fraud will continue to exist into the future, the new malicious programs to be introduced will be considerably more sophisticated and advanced. e-Commerce merchants must remain vigilant, tracking industry innovations and preparing to implement changes in a timely manner. In the absence of a risk management department, companies operating online are advised to partner with an experienced payment service provider, who will conduct market trend analyses and target payment fraud with stringent fraud protection and security measures.

Subscribe to ECOMMPAY Newsletter

Thank you for subscribing to our newsletter

Now you are a part of the ECOMMPAY community.

Subscribe to our Newsletter

Sign up to our bi-monthly newsletter to get the latest fintech news, updates and insights.
Business type*
The information you submit to us by filling this contact form will be processed in accordance with ECOMMPAY's Privacy Policy. We kindly encourage you to read our Privacy Policy carefully.
Thank you!
A confirmation message has been sent to your email address. Please click the link in the email to activate your subscription. If you didn't get the email, please check your spam or bulk email folder.

No results found. Please try searching for different keywords.