Fraud Detection and Prevention in Ecommerce

The COVID-19 pandemic is undeniably one of the major causes of why online commerce has been on the rise. Think of any products and services, search them online, and you can avail them through their website or mobile app. However, since we do more online transactions, e-payments go in and out by millions and billions. Fraudulent individuals find it as a gold mine. 

Research shows that there could be a potential loss of USD 24 billion from online merchants by 2024. Opportunistic individuals are making more elaborated fraud attacks.

Because fraud attacks in e-commerce happen online, it’s challenging to trace individuals who orchestrated it. The next best thing to do is to take preventive measures by detecting accounts that are most likely to do fraudulent activities. But, what are the common types of online fraud? Check the blog here. These types of online fraud can negatively affect your customers and your business’s financial health. 

Invest in an e-commerce fraud prevention system instead of draining resources on resolving fraud issues.

 

What’s the Best Way to Prevent E-Commerce Fraud?

 

When choosing a fraud prevention solution for e-commerce stores, it must boost your platform’s customer experience, identity verification, and fraud detection. It should be seamless, without exerting any extra effort on either the platform or the user. How can you achieve this, then?

Detect Potential Fraudulent Accounts using Good Data Sources

 

Defend your business from different types of e-Commerce fraud such as friendly fraud, account takeover, re-shipping fraud, affiliate fraud, and internal fraud. By detecting fraud in an early stage, you can significantly reduce the strain from your team in performing manual reviews, so  they can focus on transactions that need further review.

Did you know that an e-mail address and mobile number that your customer has used on sign-up can tell a lot about their digital identity? A good fraud detection system can check customer’s social media presence footprint in seconds while staying compliant to data privacy policies globally. 

 

Stop Second-Guessing, Let Social Media Presence Paint the Picture

 

A customer’s e-mail address and mobile number are usually used to register on any social media platforms. A good fraud detection tool can tell if the user has a genuine identity and activity done on their profiles.  If the user has profiles that are updated, recently used, with a good profile photo, and well-tended bio, chances are that person has a digital footprint that you can trust. On the other hand, if the user has little to no presence on social media, you may need to think twice about onboarding that person. 

 

Automate the Process to Reduce Manual Reviews

If the fraud prevention system can detect and consolidate social media presence data, then it must be able to scan through hundreds or even thousands of users in a matter of seconds. You will need to have a unified “scorecard” that will help your system to make split-second decisions. This will also ensure that you can onboard good customers while saving your online business from dishonest ones. Your fraud detection system needs to be easily integrated through an API.

Fraud Detection for E-Commerce Shouldn’t be a Hassle

 

Give your fraudulent users a hard time in your online platform without giving too much load on your team. You can rely on an intelligent and fast online fraud prevention solution that’s flexible, scalable, and accurate. 

Find fraudulent users before they make a move with FindSocial by FinScore. Developed by the multi-awarded alternative data analytics company, FindSocial is a fraud detection and preventiontool that scans through over 20 social media platforms using an e-mail address and/or mobile phone number from any country.

For high volumes of e-mails and mobile numbers, adding in the FindSocial API is the best way to go. But, if you are simply looking for a quick look at a small list of e-mails and mobile numbers, you can access the FindSocial web-based portal. 

 


Ready to Detect Fraud?

 

We hope that you were able to understand the common types of online fraud, how it works, and how to prevent fraud attacks. It will take time to make an informed decision if you truly need to integrate a social media lookup tool and scoring tool right now. 

But, what if you are still curious about FindSocial, can benefit your business specifically? You may be operating something unique. Let us help you with that. Feel free to ask us about FindSocial and our team will take care of you in no time.

FinScore is a financial technology company in the Philippines that offers a powerful credit scoring platform and fraud detection tools based on alternative data, including telco-based data. 

As the pioneer in lending and scoring of the unbanked, we continuously provide fintech services that empower financial institutions, banks, and credit bureaus with flexible platforms to help them make insightful and reliable credit decisions. Contact us today to learn more about our products and solutions for financial institutions.

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