E-commerce is booming, as quarantines, restrictions, and mall closures have made everything go online. It has become easier and more profitable to buy and sell over the Internet, but cunning fraudsters have found ways to cheat. Not only ordinary users but also sellers have to deal with them: swindlers pretend to be customers and pay for goods and services in online stores using stolen data and cards, after which the real card owners demand refunds through chargeback procedure. As a result, the merchant loses not only the goods but also the money. Here, the Ethoca services may come in handy.
There are other cases when the customer himself demands a refund without trying to cheat anyone. Whereas previously the customer came to the store, saw the goods, and paid for them (either in cash or by card), now the customer buys the goods without seeing them in person. That’s why cases of returns and requests for refunds have become more frequent and the services of Ethoca become necessary. In this article, let’s talk more about online fraud and ways to protect yourself as a seller. Also, we will tell you more about the Ethoca and MaxPay Account services for fighting fraud online.
Types of Fraud and Ways to Protect Your Business and Money from Them
- Pure fraud
This type of fraud is the most dangerous because it affects both the buyer and the seller. Hackers fraudulently obtain customer data and make a purchase from your store, say for 500 EUR or USD. You send the goods, the scammer takes them away. After that, it turns out that the data was stolen and the real owner of the card asks you to transfer money back. Of course, you may refuse, but then the bank may initiate a chargeback process with you.
In this case, we recommend that you secure yourself ahead of time and open a business account (don’t do business with your personal bank accounts). Also, use the services of the MaxPay Account payment gateway and Ethoca Secure Ecommerce Fraud services, which take care of the verification and confirmation of the transaction. After full verification, the money arrives in your business account. In the case of this type of fraud, the payment gateway will handle the dispute.
- Wire fraud
Wire transfers are still alive, and many people pay for services and goods this way. But there are problems here because such a transfer takes several days (at least in Europe), but the confirmation of the transfer is in the hands of the client. The client demands the goods, but you don’t have the money yet.
In this case, we recommend you to use the services of the Ethoca analysts. They will help you to identify dishonest customers and prevent fraud.
- Fraudulent Friend
This type of fraud comes from the buyers themselves, who want the goods without paying for them. They claim that they have never received the goods, so they want the money back. But they will be prevented from doing so by Ethoca. The Ethoca tools for preventing fraud will manage the dispute and defend your rights. With Ethoca, you can be sure of the safety of your business online.
To know more information about the Ethoca services, visit the official website.