Think of online payment fraud as any illegal or false transaction that can happen on the internet. Through payment fraud, cybercriminals can steal your money, sensitive information, and even at times, your personal property. Thus, it becomes imperative to take corrective actions against online payment fraud and prevent it from happening.
Types of Online Payment Fraud
Online payment fraud has evolved over time with fraudsters constantly developing new strategies. The high rate of internet adoption among the masses has led to the usage of different technologies and tactics.
- Online Phishing
Online phishing attacks are designed to steal sensitive information through fake websites and emails. In phishing, the goal of the cybercriminal is to trick you into entering your personally identifiable information such as bank account number, credit card number, and email address among others. Therefore, before entering your personal information online, make sure it is a known or trusted source.
- Identity Theft
Identity theft is another common type of online payment fraud. In this, the fraudster gains access to key personally identifiable information and uses it for fraudulent purchases on the internet. Such a fraud happens when the cybercriminal can penetrate the merchant firewalls through old security systems. Therefore, merchants must keep their network security updated at all times.
Triangulation is another type of online payment fraud that is growing rapidly. In this type of online payment fraud, fraudsters attempt to sell popular items at extremely low prices on well-known marketplaces such as Amazon. When the customer makes a purchase, the fraudster gets access to their card details. The fraudster then use the card details to order goods from a real store.
How Does Online Fraud Happen?
It would come as a surprise if you get to know the tricks cybercriminals use for accessing your personally identifiable information. In some cases, fraudsters may contact credit card owners as a legitimate representative and then request for personal information. Some of the sources they use to contact credit card owners include email, text messaging, redirect to fake websites, phone calls, and online auction sites.
Why It Is Harmful To Merchants?
To any type of business, online payment fraud comes at the expense of customer trust. Of course, the merchant is going to lose money during payment fraud. But the merchant also stands to lose their existing and potential customers. Thus, affecting their reputation, financial standing with banks, and profit.
How to Prevent Fraud?
The following measures will allow merchants to reduce the risk of payment frauds.
- Frequently run security checks.
- Use firewalls to protect against network penetrations.
- Ask your customers to set strong passwords and change them frequently.
- Always remain in the know-how of new payment fraud techniques.
- Partner with a verified payment gateway like Acqra.
Acqra is a trusted digital payment facilitator specializing in flexible and secure payments for businesses and merchants. Do not hesitate to get in touch with Acqra for more information.