Digitalization has created a revolution in all sectors including commerce and business sectors. Even though online shopping and transactions are a boon to both customers and enterprises, there is always a possibility of risk in it.
E-commerce fraud is a false or illegal transaction made in a webshop. The main disadvantage of online transactions is that the physical presence of the card is not necessary for it but merely the digital information of the card is required. Thus the fraudsters can hack and steal this information which is often stored digitally.
As the digital revolution and growth of e-commerce is happening all around the globe there has been a major increase in cyber-crimes related to e-commerce. Recent surveys show that customers are less confident about the security of online shopping and transactions due to increasing e-commerce fraud activities. Many customers blame the retailers for their financial loss and most of them have never shopped again from the online shopping accounts where the fraud has occurred. This poses a great challenge for sellers who only want to safeguard their businesses while still ensuring a smooth and secure shopping experience for their customers.
India, being a fast developing country, the situation is not different. According to the RBI, total frauds involving an amount higher than one lakh have increased significantly in the past years. Most organizations have taken dynamic cyber security measures to prevent this jeopardy, there is always a chance that they get exposed to these defrauding activities.
The use of novel technologies to improve the payment process and minimize fraud is also becoming more common. With the advancement of technology, fraud identification and control can now be accomplished through the use of Machine Learning (ML) and Artificial Intelligence (AI) algorithms. One other option is to take an integrated approach, in which fraudulent individuals’ profiles and data are pooled and used for a better purpose in the future. However, there is no one-size-fits-all solution to avoid fraud. It is a continuous learning process, which requires constant vigilance and awareness.
Scam artists are becoming more advanced in their methods of attacking online shoppers. As e-commerce grows in popularity, so does the number of attacks on web stores. However, online businesses are becoming more refined in their detection and deterrence of online criminals.