Online Fraud Protection Series: How bad could it be?
Online Fraud Protection Series: How bad could it be?
Added by Fi. January 16, 2006
Download our Online Fraud Protection Guide from Attitude's osCommerce Business Series
Anyone conducting online transactions runs a risk of being defrauded. This series outlines specific things you can look out for and steps you can take to minimize that risk.
When someone is deceptive or misrepresents the truth to get things they're not entitled to, they're committing fraud.
Unfortunately, this has always been a problem for the business community.
Now, with the advent of ecommerce, merchants who trade online need to be aware of the potential for loss through fraud.
Anyone who conducts online transactions is at risk, including those using osCommerce. But there are warning signs you can look out for and steps you can take to minimize that risk.
This series and the related PDF guide, How to Lose a Million Dollars (or not): a merchant's guide to online fraud protection, is relevant to anyone starting out in ecommerce or for the seasoned ecommerce merchant who wants to learn more about the risks they face.
The risk of fraud shouldn't scare you off ecommerce. Our aim is to help you become more aware and protect yourself. If you have money, there's no shortage of people around the world who will steal it from you in any number of ways. But obviously many merchants are successful in spite of this.
The key is to be aware of how your business could be threatened and reduce your likelihood of becoming a victim.
How bad could it be? The effects of online fraud
As a merchant, being a victim of fraud can have a range of effects on your business. These effects include:
Online credit card fraud
Theft of goods and services through credit card fraud is the most important form of fraud to be aware of, as online merchants are particularly vulnerable.
Because you're unlikely to meet your customers face-to-face, it can be hard to know whether the credit card payment you've accepted is really from a valid customer.
If it isn't, you may lose both the product and the payment. And while credit card holders usually have limited liability, merchants shoulder the full cost of a fraudulent transaction and related fees.
Next installments:
Download a full printable PDF of the Online Fraud Guide.
Read Attitude's disclaimer.
Anyone conducting online transactions runs a risk of being defrauded. This series outlines specific things you can look out for and steps you can take to minimize that risk.
When someone is deceptive or misrepresents the truth to get things they're not entitled to, they're committing fraud.
Unfortunately, this has always been a problem for the business community.
Now, with the advent of ecommerce, merchants who trade online need to be aware of the potential for loss through fraud.
Anyone who conducts online transactions is at risk, including those using osCommerce. But there are warning signs you can look out for and steps you can take to minimize that risk.
This series and the related PDF guide, How to Lose a Million Dollars (or not): a merchant's guide to online fraud protection, is relevant to anyone starting out in ecommerce or for the seasoned ecommerce merchant who wants to learn more about the risks they face.
The risk of fraud shouldn't scare you off ecommerce. Our aim is to help you become more aware and protect yourself. If you have money, there's no shortage of people around the world who will steal it from you in any number of ways. But obviously many merchants are successful in spite of this.
The key is to be aware of how your business could be threatened and reduce your likelihood of becoming a victim.
How bad could it be? The effects of online fraud
As a merchant, being a victim of fraud can have a range of effects on your business. These effects include:
- Immediate financial loss due to stolen stock/earnings
- Damaged reputation
- Loss of customer trust
- Loss of investor confidence
- Lowered sales
- Extra costs of time/money to manage each fraud incident
- Lowered staff morale
- Possible legal costs
- Lowered value of your stock/services
- Additional bank fees for transaction reversal
- Potential problems retaining your merchant's bank account after too many reversed transactions
Online credit card fraud
Theft of goods and services through credit card fraud is the most important form of fraud to be aware of, as online merchants are particularly vulnerable.
Because you're unlikely to meet your customers face-to-face, it can be hard to know whether the credit card payment you've accepted is really from a valid customer.
If it isn't, you may lose both the product and the payment. And while credit card holders usually have limited liability, merchants shoulder the full cost of a fraudulent transaction and related fees.
Next installments:
- Other Common Types of Online Fraud
- Assess Your Risk
Download a full printable PDF of the Online Fraud Guide.
Read Attitude's disclaimer.
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