Steps of Preventing Fraud in the E-Commerce

Steps Of Preventing Fraud In The E-Commerce

In e-commerce, there are so much risks that might affect the merchants and customers. One of the risks is fraud. Fraud is not something new in e-commerce. Fraud is something that all customers and merchants are worried about. This is because if fraud occurs in any companies or if any e-commerce do not have fraud protection, customers will not be loyal and the revenue will slowly decrease. Fraud can be in many ways.

There are several types of frauds. Different fraud, different ways to do. But, their aim is still similar. Here are some of the types of fraud identity theft and identity fraud, individual fraud, corporate fraud, online fraud, and advance fee fraud.


How to prevent from Fraud

If there is any cases of fraud in the world, it must be ways on how to prevent them to happen Fraud protection is very important and useful for people or industry, especially e-commerce industry. This is because, e-commerce industry uses internet to run their business.

In fact, all the case of frauds occur when customers using internet to do transactions. So, here are some of the ways on how to prevent from fraud. It’s very useful for the e-commerce industry.

1. Develop policies for your company

State in your e-commerce site that you will not accept order from unconfirmed and unverified account for making payments. State others related policies. Make sure it’s clear and easy for the customers to understand.

2. Monitor all orders

Some companies can perform automated orders. But it will be good if you can monitor all the orders because you can detect some strange orders or normal orders. If it is a normal order, you may proceed but if you encounter the strange ones, you can cancel it.

3. Utilize AVS and CVV verification systems

You need to investigate if the credit card address info is incorrect. Any possibilities can happen. You might call the related person and ask them, to confirm the address before sending the goods.

4. Aware with rush order and overnight shipping

It happened when the shipping address is different with the billing address. If the credit card has been stolen, it still time to make a report. So be aware with rush order and overnight shipping order. Call the owner of credit card to reconfirm either it is ordered by them or not.

5. Check the email address and IP address

Check every email address and IP address for every order. Some of them are lying in terms of address. It is more secure and help to protect from fraud. You might cancel the order if the suspicious orders keep coming.

6. Be alert with the international orders

Some countries from Asia and Africa are well-known with credit card fraud. So, you have to be more cautious with the international orders.

7. Signature confirmation

You might be charged for extra money if you use signature when delivery but it will help to prevent from fraud.

8. Use fraud protection service

Some of the companies offer this fraud protection services. It is quite expensive, but it depends on your financial to use the services. Look after your budget, then you think either you should use the service or not.

9. Contact and know the customers

Make sure, after you receive any order or email, contact the related customers to make sure that they are real. If you can’t reach them, high possibility that they are trying to do some illegal activities.



All in all, there will always be ways to prevent fraud. As e-commerce players, if you want to be successful, you need to know and focus more on fraud protection because customers are very particular regarding fraud.

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