There has been a huge spike in e-commerce fraud in recent years, with cybercriminals targeting business sites to harvest customers’ financial data and commit account takeover, loyalty fraud, and more. For businesses, it’s a conundrum. What’s the best way to ensure their sites are as secure as possible without impacting the customer experience by, for example, slowing down page loading times or having their visitors jump through hoops to make a purchase? Happily, there are solutions that offer the perfect balancing act.
The Cost of E-Commerce Fraud
The cost to businesses of e-commerce fraud can be stratospheric. By 2029, it’s anticipated that globally and collectively, businesses will be losing in excess of $100 billion to this type of digital crime. The costs aren’t just financial. The sort of reputational damage e-commerce fraud can inflict may be catastrophic to businesses of all types and sizes.
Despite the risks, many businesses still don’t have adequate protection in place to keep themselves and their customers safe from e-commerce fraud. With new threats emerging every day as technology becomes ever more advanced, it’s vital to take action.
Fraud Detection Without Friction
The best e-commerce fraud prevention techniques don’t create friction for the customer or detract from the user experience. You want your site visitors to be able to navigate through their journey, from landing on the homepage to (hopefully!) checking out, without putting barriers in their way.
A software solution designed to monitor for fraud risks 24/7, and that deploys machine learning to stay alert to newly emerging threats, is one of the best ways to protect your platform without compromising the customer experience. Look for robust, high-quality fraud prevention software able to analyze large volumes of traffic and block the source of potential attacks before they can cause havoc.
There are lots of other simple steps, too, you can take to protect against e-commerce fraud without introducing friction:
- Regularly audit your e-commerce platform to ensure it’s as secure as possible.
- Install SSL certificates for your sites.
- Require strong passwords for all user accounts.
- Always collect CCV codes for payment card transactions.
- Put a limit on the number of purchases that can be made by a single account in a day, and manually review any suspicious orders.
- Never accept orders where shipping is requested to risky addresses, such as a virtual address or PO box.
- Only collect the data from customers you really need – the less sensitive data you hold, the less vulnerable your business will be in the wake of an attack.
Beginning the Fightback Against E-Commerce Fraud
E-commerce fraud may be on the rise, with cybercrooks becoming increasingly more sophisticated in their methods, but there are plenty of ways businesses can level the playing field and fight back against this threat. Deploying a high-quality fraud detection and prevention solution, regularly auditing your e-commerce platform for safety, and being aware of the signs of fraud can make all the difference, giving both you and your customers protection and peace of mind.
👤 About the Author
Ashwani is passionate about DevOps, DevSecOps, SRE, MLOps, and AiOps, with a strong drive to simplify and scale modern IT operations. Through continuous learning and sharing, Ashwani helps organizations and engineers adopt best practices for automation, security, reliability, and AI-driven operations.
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