Online businesses had flourished a lot recently, especially in covid times when people had to move to E-commerce for their necessities and preferences. It has been reported that more than 60% of people now prefer online shopping if they have a choice. However, with this rise in E-commerce trends, online fraud chances have also surged.
There are several forms of online fraud that impact both; the seller and the consumers. It has led to massive losses. Whale social media is a helpful tool to promote business. It is a connection bridge for sellers and consumers to pave the way for convenient E-commerce easily, but at the same time gives rise to several E-commerce frauds as well.
These frauds can be avoided by carefully taking the required steps. Here are some ways that businesses and consumers can avoid online fraud:
- Identity verification is one of the most important factors in the digital world these days. There need to be strict verification measures to ensure that only authorized persons have access to the platforms. If there isn’t any proper measure being taken for identity verification, identity theft individuals can use this as an opportunity to get a hold of a massive number of users and get sensitive info and money from them by hiding their true identity.
- There is a need for businesses to adopt adequate anti-money laundering measures to ensure that no suspicious or faulty transaction takes place. Currently, there are several artificial bits of intelligence. Make better use of the growing technology to reduce the risk of getting scammers involved in the business.
- Furthermore, it is important to have additional safeguards in place beyond just relying on KYC (know your customer) and AML (anti-money laundering) checks. Even if someone has a legitimate identity, they may still be capable of conducting fraud easily, so it is important for businesses to continuously keep a check on the transactions to identify customers who may pose a low, medium, or high risk. To reduce the risk of fraud, businesses can look at billing and shipping information and the IP addresses of customers to detect any inconsistencies and take appropriate action to prevent damage.
The most targeted businesses in regard to fraud activities are usually the ones that either lack fraud prevention experience or have not invested in any protective measures.
Using social media influencers for promotion and marketing can upsurge the risk unless appropriate safeguards are put in place.
To lower the risk of online fraud, it is important to have a step-by-step approach that includes accurate and instant identity verification, identification of identities using AML and KYC measures, and the implementation of AI-ML-driven technologies to monitor transactions and identify trends.
All businesses need to make sure that their business model is secure and protected from any potential fraud and threat. It should not be vulnerable to any given extent that can help cybercriminals to conduct any kind of fraudulent activity within the business boundaries.