In the world of online shopping, consumers have a tonne of fascinating options. Yet this offers eCommerce scam champions and fraudsters a comparable number of oppor
tunities. By taking proactive steps, you can always stay one step ahead of fraudulent [x1] behavior and protect your store and customers from eCommerce fraud.
In this article, we will outline some common e-commerce shipping frauds and how to prevent them.
So, let’s get started!
Common E-commerce Shipping Scams
Product Received but Marked ‘Not Received’
This fraud is popular because it’s easy to do. In this type of scam, there is no need for the customer’s retail account or to commit online identity theft by stealing personal information. This is one of the sneakiest shipping frauds when an item marked as ‘not received’ is actually received.
Scammers do this by placing an order for a product, receiving it at their residences, and then claiming to credit card companies that their orders never arrived. One of the trickiest issues in the connection between a store and a client is created by these claims.
If the retailer does not accept the claim then he would lose the customers. On the other hand, if he accepts the claim he loses both money and the product. All in all, the retailer will be at loss in both cases.
How to Prevent Such Frauds?
Make sure your return policy is clear and the return process is simple. Some customers seek to get a refund by saying the thing never arrived because they are annoyed by the effort needed to return a purchase. Reduce the likelihood of dissatisfied consumers who feel suddenly entitled to take advantage of the system by being transparent about returns and the products you’re selling.
Although dealing with INR claims will never be enjoyable, with planning, you may lessen the burden.
Payment Fraud
When a customer engages in payment fraud and makes an online purchase using a stolen credit card, packages are frequently rerouted.
Because the legitimate cardholder’s address is utilized without being flagged, the transaction is typically cleared. The original address is altered, though, after the purchaser receives a shipment confirmation and the delivery is on its way.
Sometimes, the customer knowingly gives a fake shipping address and monitors the delivery using online tracking details provided upon confirmation. If a shipment cannot be delivered, the customer provides a new delivery address. But if the package is rerouted, extra charges could apply to the retailer.
Last but not least, a client can place an order online, have it confirmed, and then call the retailer to inquire about using their preferred shipping method. These clients probably already have an established relationship with outside shipping companies and feel comfortable accepting mailed things without being flagged, which makes it more difficult to trace and show that the package was delivered.
How to Prevent Such Frauds?
This problem demands a multi-step solution. First of all, it’s crucial to remember that not all clients have malicious motives. In reality, many people can have a valid cause to reroute a delivery. Starting with a clear shipping policy that states there is a zero-tolerance for shipment rerouting on their website, social media accounts, and email confirmation, merchants should avoid upsetting or insulting genuine consumers.
Make sure that a customer’s zip code and address are verified before shipping. Finally, especially if the order is significant, make sure you only ship to the original address listed in the confirmation data.
Note: Phishing scams are also dangerous. Phishing is when online fraudsters mislead people into revealing personal information through emails, phone calls, or text messages.
Consumers who fall victim to phishing scams may unintentionally reveal their usernames, passwords, bank account information, billing address, or Social Security numbers. While phishing scams may occasionally alter, there are some universal signals you may look for to spot them.
Misuse of Shipping Accounts
When it comes to fraudsters, nothing is off-limits, not even shipping accounts. Using a stolen shipping account number to hijack shipping accounts is a free and covert way to send out bulk goods. Once these account details are obtained, they are frequently utilized in a similar way as stolen credit cards and can seriously hurt your profitability.
Employees occasionally ship personal packages using the company’s account number in less serious instances. In the worst-case scenario, these stolen accounts are used to transport illegal substances, stolen property, or counterfeit money over large distances, even across the country.
How to Prevent Such Frauds?
A central management system with the following capabilities is required to effectively prevent stolen shipping account numbers:
· Ensure only a few trustworthy personnel have access to account numbers.
· Provide a reporting system that enables these users to routinely arrange pick-ups and track deliveries without requiring ongoing authorization.
· Check frequently. Data can be utilized to track user activity for cross-referencing purposes with a tracking system in place.
Final Thoughts
Brush up on your knowledge of eCommerce scams and implement effective preventative steps to safeguard your business and customers.
eCommerce scams take a variety of forms and are always changing. As a result, you must be aware that you are fully capable of identifying eCommerce fraud.
