E-commerce fraud prevention: The 7 worst scams and how to stop them (10 prevention tools)

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Your suspicions are correct: e-commerce fraud is on the rise. Up nearly 30%, to put a precise number on it, according to an annual study by LexisNexis Risk Solutions . Even more worrying: That figure is nearly double the growth in e-commerce sales, according to data from Digital Commerce 360 ​​.

To make matters worse, e-commerce merchants have to fight fraud on two different fronts. On the one hand, you have to protect yourself from schemes that specifically target merchants, such as fraudulent chargebacks or site spoofing (see below).

But on top of that, you also have to protect your customers from scams. Hosting scammers on your site is a kiss of death for online stores – even you are just as much a victim as your buyers.

Fortunately, e-commerce fraud prevention is also on the rise, with methods as sophisticated as the scams they thwart. In this article, we outline the 7 worst and most common e-commerce fraud scams: how argentina phone number data they work, what warning signs to look out for, your best defenses, and 10 e-commerce fraud prevention tools to optimize security.

Let's get started!

7 Worst E-Commerce Fraud Scams to Watch Out For
Your first defense against e-commerce fraud is simply knowing what to expect. Here are the 7 most common scams that online stores are vulnerable to.

1. Email account phishing
Most people are familiar with email phishing scams , so let's start there. These are as old as the Internet itself, so many of you have probably already opened an email from a stranger asking for sensitive account information.

However, lately we are seeing a rise in scammers posing not as Nigerian princes, but as e-commerce stores . They send emails disguised as order/delivery confirmations, aiming to extract sensitive account data or lead victims to a fraudulent site.