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E-Commerce and Online Fraud

The Internet has become an expansive worldwide network and users have the freedom to access this network from multiple devices and locations. In light of this growing network, many forms of commerce have also moved to the Internet. E-commerce or commercial transactions that take place over the Internet, have become a growing part of international markets and businesses. However, this growing market has also led to the proliferation of online fraud. In addition, by gaining access to this worldwide network, also referred to as the Internet, online fraud is able to harm users and markets on a larger scale.

What Factors Indicate Online Fraud?

In order to begin to prevent online fraud with e-commerce, it is important to be able to recognize online fraud. There are certain indicators that can help online consumers recognize fraudulent activity. First, multiple orders within the same day, hour, or minute from the same user, address, or credit card will generally point to fraudulent activity. Also, shipping addresses to suspicious locations, such as abandoned buildings or P.O. boxes, may be indicators of fraudulent activity. Anonymous email accounts associated with online users placing purchases indicate a higher likelihood of online fraud. These indicators do not necessarily suggest that the online activity is absolutely fraud. Instead, these indicators help protect online consumers by arming them with early signs that can help prevent future harm.

What Methods of Prevention Are Effective Against Online Fraud?

With online fraud ranking as one of the biggest problems with e-commerce transactions, both online buyers and sellers can take steps to protect themselves and prevent fraud. Perhaps the best tool is to use the very network that helps perpetuate fraud, i.e., the Internet, to help prevent fraud.  The magnitude of online resources, such as Google Maps, can help users protect themselves from fraud. For example, online merchants can check addresses using Google Maps to ensure that the billing and shipping addresses are valid.  Merchants should take care to utilize fraud alert programs and devices that monitor online activity and indicate suspicious behavior. Merchants can call consumers who place online orders to verify the cardholder in an attempt to avoid fraudulent sales or identity theft. Merchants should establish a sorting system that considers various “fraud indicators” to help distinguish between valid orders and fraudulent orders. This will enable the merchant to quickly place valid orders, allowing for a steady revenue and admirable customer service, while allowing the merchant to look more thoroughly at the potentially fraudulent orders. Meanwhile, buyers can help avoid online fraud by being cautious where they conduct their e-commerce transactions. By limiting online purchases to reputable websites, buyers may reduce their risk of running into fraudulent transactions.

At the Law Offices of Salar Atrizadeh, we guide our clients in legal matters regarding all aspects of cyber law by using extensive knowledge and skills to create innovative solutions. Please contact us today to set up a confidential consultation.