Businesses are now in search of opportunities to protect their customer’s data while increasing the revenue. Every New Year comes with new risks and challenges to process the customer assets. The online retailers need to balance the internet business fraud challenges by increasing number of criminal organizations. The current internet security issues are at a peak from past couple of years. The question that arises here is what steps should be taken to beat the internet business fraud challenges in 2021?
Consumers fear that their information might be stolen while using credit cards online or shopping. Alternative payment methods are also opening new ways for cybercriminals. In this article, you will learn about the fraud challenges to beat this year. This article also contains the solution to these fraud issues while buying and selling online.
Table of Contents
Fraud Challenges to Beat:
1) Price Manipulation Attack:
This attack is the most common one of the present time. It occurs on the customer shopping cart.
- The payable price of the product is hidden in an HTML field of a web page.
- The attacker uses some process and modifies the payable amount.
Such vulnerabilities can also be found by using some third party software where the price is stored on the client side cookies.
Thus the attacker can easily manipulate it.
By using double check system, this issue can be handled to a great extent. This system ensures that the price that the customer paid is the actual price of that product.
2) Triangulation Fraud:
This fraud occurs via three points. These involve:
A) First Triangle – The Storefront:
Here fake stores offer expensive goods at affordable prices. In some cases, an extra discount is added too. Then the fake shop collect the customer data.
B) Second Triangle – Stolen Card Data:
It involves using that stolen card data to order the good at a real store, and then they are shipped to the original customers.
C) Third Triangle – Using Stolen Data:
This step involves fraud using that stolen data for making additional purchases. The fraud is not detected for an extended period which results in some greater damages.
3) Merchant Frauds:
In such fraud, the goods are ordered, but they are not shipped. The cybercriminal keeps the payments.
4) Investments Frauds:
Many stock investors become the victim of fraud investments schemes. As a result of which their money and identities get stolen.
- Many of such scams are done by newsletters online.
- Cybercriminals also make use of online bulletin boards to steal money.
5) Technical Attacks:
Such challenges impose great security threat to any business online.
a) Denial of service Attack:
Denial of service is the most common one of this sort. This attack targets the sites or services that are hosted on a very high profile web server. These attacks paralyze a network’s activity and make it unavailable for its users. The primary issue in preventing this attack is tracing the attack source.This is because most of the time spoofed IPs are used for such attacks.
Symptoms of Denial of Service Attack:
Some symptoms of this attack include:
- Increase in spam emails
- Unable to access a particular site
- The site becomes unavailable
b) SQL Injection:
This attack method exploits the application’s vulnerability. The encryption protection can only check the security of data and doesn’t hold any responsibility for reviewing the data filled by the user that goes to the web server. If the attacker’s input data contains vicious SQL query instruction in the form page of the site, then such query instruction will result in compromisation of some vital information when executed on the server.
Following security approaches can be followed to beat the challenges discussed above:
1) M-Commerce Security Approach:
M-Commerce is gaining vital importance. People now prefer shopping from their smartphones. To know more about m-commerce read here. Thus mobile payment fraud is rising too. To keep their customers happy and free from e-commerce fraud, merchants need to know that the approach for m-commerce is a bit different from the desktop e-commerce. Many customers also prefer the same-day delivery which increases the risk of fraud by shortening the available window for the merchants for identifying the scam.
2) Network Security:
Merchants need to increase the network security because hackers try to get into the retails system to steal the customer data and then sell them to third parties. A multilayered approach to the Customer verification is also required at this stage to detect the fraud tactics.
3) Use of Data Science:
Data science technology can be used to beat the payment fraud challenge.
- Businesses need to understand the importance of data science.
- They can protect their customer data by identifying the fraud in real time during their customer transaction.
- Self-learning fraud prevention system can also be used in this regard.
4) EMV Cards:
EMV cards are being introduced that contain a microchip embedded in them for security. This microchip holds the responsibility of checking the real-time activities of the customer transactions.
It uses algorithms to convert the valuable data into new values. In this way, cybercriminals are unable to hack the data.
6) Point to Point Payment:
This one is the most secure one.Here the data gets encrypted from the initial stage.
It assigns some random values to the data. In this way, hackers are unable to access that sensitive data from the token.
8) 3D Secure:
It adds a healthy level of security by asking the customer to enter a passcode or the biometric data to complete the transactions online.
The fraud landscape is no doubt growing at a rapid rate. There will be new challenges for the merchants who want to build the relationship of trust with their customers. Thus data integrity and authentications always remain to be the critical factors to the success of any internet business.
It is quite essential to prevent such online frauds from hitting your business. These issues need to be looked upon for better solutions as the global e-commerce market is snowballing and customer satisfaction is what matters the most for retailers.
By finding a new way, such challenges can be easily overcome for the sake of business survival. The prevention of such e-commerce fraud requires worthy endeavors. The transactions need to be regularly monitored.