4 E-commerce Fraud Detection Trends in 2017

Fraud Detection Trends in 2017


Before we welcome the hysterical upheavals of 2018, let us look back at some of the trending online scandals that have created a turmoil in the online market. Unsurprisingly, 2017 was yet another year filled with eerie and troublesome e-commerce and online frauds.  Thus, before you go ahead to start your own retail online business, read on to prepare for self-prevention against potential frauds coming your way.

This post will discuss the frauds and then their detection trend one at a time.


Fraud 1: Cross-border frauds

Now, the major growth is happening overseas, especially in Asia, which is also a hub for most of the online frauds. Retailers all around the globe are looking ahead to capitalize their boundaries towards Asia for its growing market. Yet, they will have to take care of rise in cross-border frauds, which again is a Red Cross sign for keeping check.

Trend 1: Remove fraud filters

According to a fraud survey, most of the internationally available merchants rely on Address Verification System (AVS) for order validation, which proved more or less redundant for validation anymore. Therefore, retailers are not much relying on AVS. About 70% of the merchants have set their own rules for international orders, such as, limited payment methods and banned IP addresses from several countries.

Fraud 2: Clean fraud

A criminal mind usually moves two-steps ahead. Privileges of the smarter technology, fraudsters now have more refined methodologies allowing the most sophisticated fraud, popularly termed as, Clean Fraud. In this phenomenon, it is not possible to know until before a chargeback is incurred.

4 Fraud Detection Trends in 2017

Trend 2: Crosschecking the shopper’s transactions

This means a regular and consistent crosschecking of previous transactions to the ongoing ones. Look for repeated orders; it will help you to identify die-hard shoppers and distinguish the swindlers.

Fraud 3: Fraudsters as a disguise of mobile shoppers

With growing technology, shoppers are moving from desktops to mobile phones. In Japan, 50% sale is marked by mCommerce that included fraudsters as well. Therefore, to avoid this, retailers have to be very vigilant.

Trend 3: Tracking frauds by approval rates

Merchants are worried about frauds via mobile shopping and need something very secure to avoid it. The safest way is to track the CNP frauds, keep a check on order approval with a particular shopper. The social apps, GPS location, basic details will definitely help in identifying the fraudster.

Fraud 4: Omni-Channel exodus

Omni channel is spread all across the web, attached to every prestigious brand and pundit thinking. As many would say, it means ‘cross channel being done just well’. This means creating a website and mobile application to give the customer in-store and a better customer experience. However, sometimes a fraudster takes the place of genuine buyer and intervene in customer’s satisfaction.

Trend 4: Synchronize data to personalize the shopping experience

The entire concept of identifying a fraudster from a genuine customer is – to first understanding your customer. An Omni-channel provides you with information, which is required to have a good customer-retailer relation. It is well suited to keep a track of a customer’s entire history, which can leverage the geographic locations, demographic trends, etc., which are necessary to know that your customer is not a fraudster.

While one cannot stop digital frauds completely in e-commerce, methods like these can help in preventing them for sure.

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