Cyber Monday: How Merchants can avoid E-commerce Fraud?

Cyber Monday, along with Black Friday, is one of the most important shopping days and sources of revenues for e-commerce companies. Large merchants and small e-commerce alike are struggling the whole year in order to prepare for the boosting sales of Cyber Monday.

Meanwhile, fraudsters and cyber-gangs are also preparing their strategies to attack merchants’ portals or to create complex fraud schemes to target retailers.

During Cyber Monday not only retailers are targets, but shoppers too. Hundreds of malicious app claiming for amazing sales are appearing, thousands of scam emails are being sent, and thousands of fake and fraudulent shopping websites are being deployed online.

A bad security strategy for merchants could bring a decrease of the brand value, anger from shoppers, and significant financial losses; a lack of vigilance from shoppers could mean a loss of our privacy and financial details, along with a good amount of cash.

Since no one, from large merchants to small e-commerce and shoppers, is immune from fraud,  UnFraud has developed some basics tips to follow in order help the community.

10 E-Commerce Fraud Tips for merchants:

1. Have implemented a fraud prevention system:

You want to be sure that your security is tight for this huge e-commerce event.

2. Have a clear counter-fraud strategy:

You need to have a policy in place with the steps you will take in the event of fraud.

3. SSL Certificates:

Your e-commerce website needs to conduct payment-processing sessions within secure socket layer, or SSL.

4. Due Diligence:

Make sure that credit and debt card numbers are the same of the last 4 digit numbers printed on receipts.

5. Verify for large orders:

Check ID card or other documents (if collected) for gift card purchases that exceed certain amounts of euros.

6. Keep up on social:

Always monitor social media as Twitter profile or Facebook page because often customers discover soon potential threats or security bugs.

7. Too good to be true:

Check and monitor of unusual large orders amount. Chances are, if it seems too good to be true, it probably is.

8. Differing shipping/billing addresses:

Be wary about the shipping address and if it is a cross-border purchase. Make sure the shipping and billing addresses match.

9. Rapid orders:

Don’t just focus on large orders, check out multiple small orders that add up. Pay attention of sequence multiple orders purchased with similar credit card numbers.

10. Lock down your Internal Operations:

Internal employee control and communication, because often an employee can accidentally open a malicious email attachment that can infect and lead a malware attack.

8 Tips for shoppers:

  1. Shop Securely:

Use secured internet connections and not public WiFi when purchase something both for your laptop or mobile device.

2. Make sure to have updated or to download an anti-virus software:

Keep your virus software up to date and running to protect yourself from those who would steal your personal information.

3. Purchase only from secured merchants:

Purchase on secure merchants website through secured connection as SSL. This powerful encryption SSL protocol allow to send and receive informations in secure way. You are on a website with secured connection if appears this close the URL:

ssl

4. Keep it online:

Never and never give personal and credit cards details during a phone call, social engineers are very good at extrapolating and connecting data points in order to prepare a large-scale fraud. If you receive a phone call from someone claiming to be a shop you’ve recently ordered from, ask for a call-back number and call them back to make sure.

5. Make a new email account for purchases:

Try to use a separate email account if you are often shopping online. This way, not only are all of your purchases in one account where you can easily check on them, but you have to worry only about one email being secured should something be compromised.

6. Research the site:

Try to land on and buy directly on the merchant site and use a search engine to look for blog or other shoppers forum where you can ask if anyone has reported a scam on that specific site.

7. Read the refund policy of the website:

A good and secured e-commerce site will have a clear and easily findable refund and returns policy that is easy to understand.

8. Check the grammar:

Read the privacy policy and terms and conditions because often phishing websites have glaring grammar errors.

It is impossible stay safe at 100%, but by using this tips, and being vigilant and smart will help you to decrease the chances of becoming a victim of a scam (if you are a shoppers) or a fraud (if you are a merchants).

What are your best security tips? Tell us below or tweet us!

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Passionate about cybersecurity and cyberwarfare, Andrea is the UnFraud Founder. Unfraud is a transaction security company able to help online companies prevent fraud. Before UnFraud, he worked as Country manager for Rocket Internet Ventures and in luxury and retail industry with companies as Valentino, L'Oréal, and PepsiCo. He is a Bocconi University and LUISS University Alumni. Linkedin: https://it.linkedin.com/in/andrea-puzo-30bb5321