Payment fraud is any type of false or illegal transaction completed by a cybercriminal. The perpetrator deprives the victim of funds, personal property, interest or sensitive information via the Internet.
Payment fraud is characterized in three ways:
Ecommerce businesses rely on electronic transactions to charge customers for products and services. The increased volume of electronic transactions has also resulted in an increase in fraudulent activities.
There are multiple methods of payment fraud:
Fraudsters have become savvy at illegally obtaining information online. Hackers often pose as a legitimate representative and contact credit card owners asking for sensitive information, then use the following means of interaction to steal personal data:
Cyberthieves also work in teams to penetrate network security systems by looking for glitches or patches that haven't been updated in awhile. These gaps give hackers access around a firewall and make it easy to illegally obtain sensitive information.
While it's challenging to entirely eliminate the threat of fraud for ecommerce stores, you can help protect against it by continually updating your network security systems. Firewalls and antivirus software are designed to act as a shield against hackers' attempts to penetrate a secure network. Constantly updating software helps ensure that your sensitive business information is safe.
There are a number of other ways to protect your business against fraudulent payments:
Payment fraud can hurt both you and your customers. By aggressively protecting your ecommerce store against fraud, you can improve your reputation and your bottom line.