Paymill, a payment solution platform that enables online businesses to accept payments on their websites within a very short time, has recently released the infographic that highlights some alarming numbers regarding e-commerce fraud and what one can do to help prevent fraudulent transactions.
Online businesses are often threatened by fraud and identity theft. The problem is that fraudulent transactions are hard to detect. However, they can be prevented with human intervention in combination with technology. One of the ways to prevent a fraud is integrating 3-D secure into checkout, a security protocol that helps ensure the customer is actually the credit card holder.
In January 2015, Internet Retailing magazine reported on a study that discovered 50 percent of online retailers said it is difficult to keep up with fraud methods and trends, while 77 percent of these merchants stated that their multichannel approaches to retail only contribute more to trouble when it comes to prevention. The result is that many are unaware of techniques to discover and therefore prevent cases of fraudulent payment card usage.
“What is clear is that in this ever-changing ecommerce landscape, fraud is becoming more difficult for online merchants to manage,” said Kevin Dallas, chief product and marketing officer at Worldpay that provides secure payment services for small and large businesses. “As merchants continue to expand their cross-border operations, sell through more channels and offer more payment methods to meet local customer needs, keeping abreast of new fraud threats is becoming increasingly challenging.”
According to RSA, the premier provider of intelligence-driven security solutions, the Security Division of EMC, the lack of preventative knowledge in regard to e-commerce fraud contributed to the $2.9 billion in losses so far in 2014 alone. Then, by 2018, the source estimated that fraud-related losses will double to around $6.4 billion.
Being an online business owner it is important to understand how fraud has evolved as well as the prevention measures one can take to prevent it. It is always better to be in the safe side than to lose thousands in chargeback fees, sales and inventory. However, these prevention measures will help one prevent fraudulent activities but it does not guarantee that one’s online business will be 100% fraud-free.