Cyber Fraud and Pandemic:
Ever since the virus broke down, the e-commerce world has been affected drastically. Online purchases and shopping became a trend to survive for all customers. This added fuel to the fire and gave an open opportunity to the fraudsters to perform cyber fraud. A report verbalizes that there has been a significant increase in the cyber fraud rate. About 700$ in the last three months of 2020 has been stolen via cyber fraud, which is approximately 70% greater than the previous year.
Ways of performing cyber fraud:
There are many ways through which a fraudster commits cyber fraud. Each time fraudsters come up with a different tactic to trick people. They lure the individuals via text messages, calls, emails, or even websites and steal their data to use it for their dirty business.
At times, they would call the victim using an authorized caller ID by pretending that they are from their bank and the victim needs to update a few things for which they need the victim’s data. They trick victims into transferring their cash or personal details. Other than that, fraudsters text or email people using the same bank thread or trick them into entering their details onto a website and steal their data. These scams are highly convincing, making it hard for individuals to detect if it is a fraud. The techniques are modifying and getting complicated for merchants to analyze or report cybercrime.
Friendly fraud is yet another popular way through which a customer asks for a chargeback from the merchants or the issuing bank after benefitting from their online purchases. However, this can be a real fraud in cases where fraudsters have stolen customer’s data and pretended to be them while making the purchases. Restaurants have been affected badly by these sorts of frauds the most since the food delivery has to be quick. The merchants have a very short while to sort out the details, and thus they miss the tiniest details and process the transaction.
Challenge for the merchants:
Fraudsters are getting smarter by the passing of time. They revise and reinvent their techniques. Once they trick the customers to provide them with the data, they can do whatever they want to do with the information. They can make payments and purchases with their credit cards or simply withdraw the cash from their wallets.
A recent trend that is becoming common among the masses, “Buy Online and Pick It Up At Store” or BOPIS, is one of the greatest opportunities for fraudsters. Since there is no shipping info required and neither merchants ask for additional information from the buyers. This process makes it difficult for merchants to analyze the cyber fraud.
Whether it is online shopping or BOPIS, at the end of the day, there’s just one customer or case reported for cyber fraud. This has turned into a major threat for the merchants. In these cases, merchants must be vigilant and keep an eagle eye on the transactions to prevent cyber fraud at a 360°. However, fraudsters just have to violate or breakthrough via one way to capture the data.
This is why we say that it is extremely challenging for merchants to analyze and track the transactions to prevent cyber fraud, especially when it comes to the food industry.
Tracking the cyber fraud:
When tracking the transaction, you need to have proper tools, a high-qualified specialized team, and the right resources. This combo will help you to analyze a purchase in-depth, reducing the chances of fraud. Industries have to upgrade their security mechanisms to prevent cyberfraud. They need a holistic 360° approach with mindful strategies that promise fast, safe, and efficient transactions and purchases. Especially amid this pandemic, preventing cyber fraud has become a #1 priority for merchants in the era of online purchases. Now, it is important to note that once a fraudster commits a crime, they leave multiple footprints, which helps in detecting the fraud.
There are a few tactics that a merchant can use to identify the occurrence of cyber fraud. One way is to analyze the identity of the customer. Look for the credentials, billing and shipping addresses, IP address, and the payment method used by the customer. Compare if the payment method has been used by the customer any time in past.
Another way is to search through the merchant’s data. The history would narrate how the customer has signed up or logged in to the website in the past whether they used the same device or IP address, whether they used a promo code, or whether there’s proof of delivery available.
Other than these, the merchants can look for the order history tab and record the purchases made by the customer. Plus, you can also have a detailed analysis of one purchase at a time if needed. Likewise, you can study the activity tab to see if there’s any proof for downloads or PDFs.
Behaviour Biometric Technology:
Businesses have reported having a reduction of about 75-80% in the cyberfraud rate if they tackled the transaction holistically. Behaviour Biometric is a technology that goes beyond the analysis of user data and history. It collects data from the user behaviour at the site in real-time, contributing to verifying the user. It differentiates and identifies the potential user behind the screen, whether it is a human, remote access trojans, malware, or robot and flag it instantly if any suspicious activity is detected. Behaviour biometric is the best technology businesses can adopt to minimize frauds and separated true customers from fraudsters.
Cyber fraud has become a threat to many industries around the world during the pandemic due to the dramatic surge in online shopping. In order to enhance cybersecurity, merchants have to take grand steps in modifying their fraud prevention solutions. Undoubtedly, the fraud tactics will continue to evolve, but with the right tools, smart team, and powerful analytics, merchants can minimize the incidence of cyberfraud.