There are several helpful tips e-commerce practitioners can follow to prevent consumer fraud. Thanks to today’s technology, e-commerce businesses can use internal communication and practices set by big companies like UPS, eBay Inc. and Paypal to help fight fraud. Here are a few tips on how e-commerce businesses can detect and prevent these deceitful schemes.
The redirection of rejected goods usually occurs when criminals gain access to personal information online, including credit and debit card numbers. The reason why the consumer usually rejects the goods that were ordered and delivered is because he didn’t order the products in the first place. Through online tracking systems, fraudsters can find out when the rejected goods have been returned to the retailer and will typically call the store immediately after the return to ask for the goods to be reshipped to a different address. If the e-commerce business or e-retailer complies, the fraudsters will eventually receive the goods and can resell them.
Thankfully, UPS provides businesses with useful information on returned packages. Carriers notify e-commerce businesses and e-retailers when goods have been rejected an unusual amount of times, and this information helps businesses track fraudulent orders. Since most criminals usually keep their orders under $25, online businesses and credit card holders should learn to flag and scrutinize small credit charges to prevent fraud from taking place.
Although fraud detection companies usually charge a fee, businesses should still consider signing up for the service. In the long run the money saved from averting criminal activities outweighs the costs of the services, so signing up will save your e-commerce and e-retailing business money.
