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FBIS, Understands The Effects of E-commerce fraud On Your Business

E-commerce has revolutionized business operations and how consumers shop. With online shopping becoming increasingly popular, companies have had to adapt and incorporate e-commerce into their sales channels. However, with the numerous benefits come some risks of fraud that every business needs to be aware of and take steps to protect against. At Forensic Brothers Investigative Services, the trusted provider of investigative accounting for Atlanta and the nation,  we believe it’s important for your business to know about e-commerce fraud, how it occurs, and what companies can do to protect themselves.


What is E-commerce Fraud?

E-commerce fraud is a type of fraudulent activity that occurs within the realm of online transactions involving the use of stolen or fake credit/debit card information to purchase goods. It can also include chargebacks for transactions that the card owner denies making. E-commerce fraud can occur in many different ways, but the most common methods criminals use include account takeover, phishing, and card-not-present (CNP) fraud.


How Does E-commerce Fraud Take Place?

Phishing: Phishing scams are another standard method used by criminals. Phishing attempts come in legitimate emails, but they contain links to fraudulent websites designed to steal personal information and credit/debit card data.

Card-Not-Present Fraud: In any transaction where the buyer and the seller are not physically present, which includes online transactions, there is a risk of card-not-present (CNP) fraud. This type of fraud involves using a stolen or fake credit/debit card number to purchase online. Since merchants do not have the physical card, there is limited ability to verify the identity of the card owner.

Account Takeover: This occurs when a criminal gains access to a customer’s account. Criminals will obtain username and password information through social engineering tactics, phishing emails, and data breaches. Once accessed, the criminal can purchase on the customer’s behalf, view their order history, and change their billing and shipping information.

What are the Effects of E-commerce Fraud for a Business?

E-commerce fraud can significantly impact the reputation and finances of a business. The most obvious effect is the loss of revenue from fraudulent transactions and the time and money spent on dispute resolution. However, it is not just the financial losses that can be detrimental; a business’s reputation can also suffer. Customers will lose trust in the company that has let fraud occur, which could discourage them from purchasing products in the future.


How Can a Business Protect Itself from E-commerce Fraud?

Businesses can take steps to prevent e-commerce fraud and protect their reputation and finances. Below are a few basic steps that a company can take:

Be Vigilant: To prevent account takeover, businesses must monitor their accounts for suspicious activity regularly. They can also alert their customers to report any suspicious activity.

investigative-accounting-atlanta-teamTrain Employees: It is important for businesses to train their employees to recognize and report potentially fraudulent activity.

Use Advanced Fraud Detection Tools: Many fraud prevention tools are available online, such as address verification systems (AVS), which can help detect fraudulent activities such as fake addresses.

Implement Strong Password Protocols: Set strict password policies, including minimum length and complexity requirements. Encourage employees and customers to use password managers to help store and create unique passwords.

Partner with a Private Investigative Firm: Businesses can partner with a private investigation firm, such as Forensic Brothers Investigative Services, investigative accounting for Atlanta, to perform background checks on employees, prevent cyber fraud, and offer training on fraud prevention.


Forensic Brothers Investigative Accounting Wants To Help Your Business Stay Safe

investigative-accounting-atlanta-featureThe rise of e-commerce has made businesses vulnerable to financial fraud. The effects of e-commerce fraud can be detrimental, leading to revenue loss and damage to reputation.

However, with the proper steps and precautions, businesses can protect themselves and their customers. It is better to be safe than sorry, so if you suspect any fraudulent activities in your business, contact Forensic Brothers Investigative Services, the investigative accounting services provider for Atlanta and the nation. By seeking our assistance, you can prevent your business from experiencing the harmful effects associated with e-commerce fraud and safeguard your business reputation from future harm.

Contact Us Now or Call Us at 678-915-1802.

The Mauldin Group


The Mauldin Group