Common ECommerce Frauds and Their Protection Techniques – Cloudways

Common ECommerce Frauds and Their Protection Techniques - Cloudways

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Ecommerce, or online stores as we call them, has pushed horizons for businesses globally. According to Statista, by the end of 2019, the global eCommerce market reached $3.5 billion in sales and captured 14% of all retail sales. This sale has been predicted to even surpass $6 billion by the end of 2020 and makeup to 16% of total retail sales.

It’s not hard to deduce from these numbers that ecommerce is advancing on a vast scale too quickly. The numbers are really exhilarating. No wonder that the eCommerce market grabbed the eye of the bad players. And ecommerce frauds pick up soon after.

It’s almost shocking to know that ecommerce frauds grew at a rate of 30% in 2017. Twice as fast as the rate of eCommerce sales that year.

ecommerce market share

Source: identiv.com

It is, thus, essential that you understand the various types of online threats that could affect your business and learn to protect your web store from them.

To help you with that, I present before you the common ecommerce frauds that are popular with hackers and ways you can check them. But first, let’s understand the very elementary question – What exactly constitutes ecommerce security?

Ecommerce security is a combination of technology and human intervention that can be utilized for the betterment of security standards of an online store & website.

To protect your website, you need to incorporate various elements of ecommerce security, which are – merchant account protection, shopping cart protection, server protection, customer account protection, credit card protection, payment security, payment gateway protection, e-mail delivery protection, database protection, web hosting security, and so on.

Securing these aspects is crucial to protect both your business and your customer on the web.

Moving on. We have been seeing a constant rise in the ecommerce frauds by the day. In fact, according to Nilson Reports from 2015 and 2016, ecommerce frauds rose by an astonishing 500%! Further, there were a couple of ZIP codes identified by Experian which were the center for these frauds. Here’s the list of those ZIP codes:

Common ECommerce Frauds and Their Protection Techniques - Cloudways 1

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This article was written by Saud Razzak and originally published on The Official Cloudways Blog.

Disclosure: Some of the links in this post are "affiliate links." This means if you click on the link and purchase the product, We may receive an affiliate commission.

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