There are many ways that eCommerce fraud can be perpetrated, but some tactics are more common than others. Keep reading to learn about some of the most common eCommerce fraud tactics and how you can protect yourself.
Ecommerce Fraud Tactics
Online shopping is convenient and can save shoppers time and money, but it can also be a target for criminals looking to commit fraud. Fraudsters employ a variety of eCommerce fraud tactics to steal from online merchants, including credit card fraud, identity theft, and phishing attacks. Credit card fraud is the most common type of eCommerce fraud. Fraudsters use stolen or fake credit cards to purchase goods or services online. They may also use stolen credit card numbers to make fraudulent charges on legitimate accounts. Credit card fraud can be challenging, especially if the thief uses a fake name and address.
Identity theft is another common type of eCommerce fraud. Thieves steal personal information like usernames, passwords, and credit card numbers to access someone’s account or make fraudulent purchases. They may also use this information to open new accounts in the victim’s name. Phishing attacks are another common way thieves steal personal information from consumers. Phishers send emails that appear to be from legitimate businesses or organizations but are designed to trick recipients into revealing their data.
Affiliate Marketing and Coupons
Affiliate marketing fraud is when a company or individual uses fraudulent methods to earn commissions through affiliate marketing. This can include generating fake leads, falsely claiming sales, or any other deceptive means of making money through affiliate marketing. Affiliate marketing fraud can be challenging to detect, as the perpetrators often use sophisticated techniques. Some common tactics used in affiliate marketing fraud include:
- Creating fake websites or blogs that promote the product or service being sold
- Using false testimonials on websites or social media platforms
- Purchasing traffic from illegitimate sources to boost website rankings and generate more clicks
- Faking email addresses and other contact information to create the illusion of legitimacy
Bogus coupons and discounts are a common eCommerce fraud tactic. Fraudsters will create fake coupon codes or discounts and post them online. They may even create entire websites devoted to bogus deals. Shoppers may be lured in by the promise of significant savings, but when they try to use the code or discount, it doesn’t work. This is a scam designed to steal shoppers’ money.
Fake Reviews
A business looking to sell products or services online may turn to an eCommerce platform to help them do so. This can be an excellent way for businesses to reach new customers and grow their sales, but it can also be risky. One of the dangers of eCommerce is that it can be easy for fraudsters to exploit vulnerabilities in the system to steal money or products from businesses. Another common type of eCommerce fraud is called “fake reviews.” In this scam, fraudsters will post fake positive reviews of a product or service to trick people into buying it.
They may even create fake accounts with high-profile names or use stolen identities to make the reviews seem more credible. Sometimes, they will even go so far as to contact a business owner and offer to write positive reviews in exchange for money. There are several ways that businesses can protect themselves against fake reviews. First, they can use an authentication service that confirms the reviewer is associated with the company they are reviewing. They can also use review moderation tools offered by some platforms, which allow businesses to approve or reject customer reviews before they are published. Finally, companies should always carefully read through customer reviews before deciding whether to purchase a product or service.
