Author: Yursil Kidwai / Source: Multichannel Merchant
Ecommerce brings many opportunities to quickly reach more customers nationwide and across the globe. It also brings risks that include domestic and international fraud. In the U.S., online fraud rose 39% between January 2016 and June 2016 according to the October 2016 Global Fraud Attack Index. The risk is greater for global ecommerce. According to LexisNexis’ 2016 True Cost of Fraud study, international ecommerce fraud happens 2.5 times more frequently than domestic ecommerce fraud.
Many retailers are successfully conducting ecommerce across borders and expanding into new markets. Others are just starting to evaluate international ecommerce. No matter the experience level or extent of your business’s reach, a fraud protection program is essential. Here are 4 tips that can help you substantially reduce your global ecommerce fraud risk.
The Social Media Factor
Have you ever proceeded to check out on a retailer’s site and received the option to create an account with your social media login? Creating an account using social media information is a convenient option for consumers. For retailers, it offers an enhanced level of security.
Social logins can verify consumers’ identities. According to Worldpay’s Fraud Trends 2016, 56% of merchants place greater trust in customers who use social media logins and 35% already use social media as part of their customer login process. According to the Worldpay report, the main reason merchants use social media for fraud prevention is to check that an account and an individual’s identify are real. Although this process is manual and time consuming, it provides retailers with information about their customers and reassurance the sales are valid.
The Mobile Factor
The UPS Pulse of the Online Shopper™ study revealed that 44% of U.S. consumers made a purchase on a smartphone in 2016 – up from 30% in 2015. As more consumers shop on mobile…
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