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How To Prevent eCommerce Fraud

While it’s not possible to protect yourself against all online threats, below are some of the most common types of eCommerce fraud – plus tips on how to help minimize exposure.

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4 Proactive Security Measures Your Online Business Needs

There are anonymous hackers all over the globe who work around the clock trying to bypass your company’s security defenses. Larger organizations likely have the resources to defend themselves against eCommerce fraud and other malicious attacks, but this doesn’t mean they’re immune to breaches, as we’ve witnessed in the news.

This isn’t always true for smaller companies. Inc. reports that an estimated 60% of small businesses go under within six months of being breached.

While it’s not possible to protect yourself against all online threats, below are some of the most common types of eCommerce fraud – plus tips on how to help minimize exposure.

1. Card testing fraud

Criminals often test stolen cards by running tiny transactions first. While it may be attractive to overlook a few lost pennies here and there, every dollar in direct theft can translate up to $3 in hidden costs due to fees and penalties.2

Protect yourself by using fraud management filters to set minimum transaction amounts for online orders. If your lowest-priced item is $2, the smallest approved transaction should be that amount or higher.

2. Stolen credit card fraud

If you sell physical goods, watch for this scam. Thieves use stolen cards to buy products before having them sent to a reshipper for collection. However, using fraud filters can help you flag orders where the billing and shipping addresses don’t match. The sale might be a legitimate one, but it won’t go through until you’ve had time to investigate.

Security is a major business objective

3. Account takeover fraud

Cybercriminals can do a lot of harm if they gain access to your customers’ or employees’ login credentials. Fortunately, you can help limit this practice by:

  • Restricting employee access to sensitive data on a need-to-know basis (also known as the principle of least privilege)
  • Mandating longer passwords for all logins – complete with symbols, numbers, and mixed-case letters
  • Requiring two-factor authentication (2FA) in which employees and customers must pass additional verification steps (beyond the usual username and password)

4. Chargeback fraud

Also known as “friendly” fraud, this scam involves customers who buy from you online pretending that:

  • They didn’t place the order
  • The package never arrived.
  • The package arrived damaged.

Proving that you’re in the right can be tough, which is why chargeback fraud results in $30 billion in annual losses for online businesses. You can help reduce the frequency of this scam by:

  • Making it easier for customers to request refunds with a clear return policy
  • You are adding tracking and signature requirements to outgoing packages so you can verify delivery independently.
  • Disabling guest checkout to make anonymous online ordering impossible

Even with a huge budget and an experienced security team, thwarting every cyberattack is not always possible. It is figuratively an arms race, with criminals constantly devising more inventive methods of bypassing security protocols and gaining access to sensitive information. However, those who build the strongest defenses have the best chances of avoiding the worst attacks.

For a more comprehensive overview of eCommerce fraud prevention tips and strategies, see the accompanying resource.

This information is provided for informational purposes only and should not be construed as legal, financial, or tax advice. Readers should contact their attorneys, financial advisors, or tax professionals to obtain guidance concerning any particular matter.

  1. “60 Percent of Small Businesses Fold Within 6 Months of a Cyber Attack. Here’s How to Protect Yourself,” Inc., 7 May 2018
  2. “CNP Fraud Costs US Merchants $3.36 for Every $1 of Direct Fraud Loss,” CardNotPresent, 30 July 2020
  3. “13 Scary Chargeback Facts,” Chargebacks911, 20 October 2020

How To Prevent eCommerce Fraud

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Benefits of a Handwritten Signature in E-Commerce

So why must you create a handwritten signature online to boost your e-commerce business? Research proves that including your handwritten signature in e-commerce, dealings can have a positive impact on business.

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7 Effective Tactics To Boost Ecommerce Sales

Times have evolved significantly, and what could be a better example than the transition into a competitive digital marketplace? Thanks to the rapid growth of e-commerce, gone are the days when merchants had to travel from town to town to conduct business.

Digital growth has allowed businesses to prosper online and in physical stores. Yet, despite the remarkable advancements of digitization, there are still some things that technology cannot beat. For instance, the significance and personal touch of a handwritten signature.

So why must you create a handwritten signature online to boost your e-commerce business? Research proves that including your handwritten signature in e-commerce, dealings can have a positive impact on business. Look at the benefits outlined below to know if it’s true.

1. A Handwritten Signature can Boost Your Brand Awareness

The e-commerce landscape has grown remarkably over the past couple of years, along with the rapid growth of technology. But in this competitive landscape, while businesses experienced better sales and greater revenue flows, they have lost their personal brand touch.

The fact is that boosting your online presence in a crowded e-commerce world takes some work. So what can you do to leave a lasting imprint of your brand’s uniqueness on clients online? By adding your handwritten signature, of course!

If there’s one thing that feels utterly personal and unique, it is a person’s handwritten signature. You can use digital technology to transfer your handwritten signature into your business correspondence online. It will help create an effective personal touch and help your clients distinguish you from the rest of the competition.

Just like putting your personal signature on business documents establishes you as a business entity. Similarly, a handwritten signature on business emails would do the same. It would help reflect your identity, brand voice, values, promises, and icons.

2. Personalization Assures Clients of Your Business Legitimacy

Do you know how a rapport is built? Surely you will say when two parties work to build mutual respect. If that’s the answer you gave, you are right. But how does one build a good rapport with their clients online?

Connecting and adding personal touches to correspondence to help foster trust and mutual respect. Believe us when we say a handwritten signature in an online correspondence makes clients feel respected and honored.

It helps the clients see your efforts in building a rapport with them and encourages them to do the same. Even from an advertising point of view, surely you’ll agree that maintaining a client is more cost-efficient than recruiting new ones.

4 Dos And Don’ts Of Running A Marketing Campaign

Numerous apps and software available online help add handwritten signatures digitally to business correspondence online. Not just your name, but these apps make it possible to include your handwritten signature in your emails in a digital form.

All you need to do is invest in a signature-generating tool and transform your handwritten signature into your desired digital format. Then, all you have to do is add it to your emails of business correspondence to make clients and customers feel appreciated.

Any business owner who tries to equip their emails and client-facing letter with their signature and name in the introduction makes their business communication feel personal.

3. Better Response Rates

Have your response rates been lagging lately? Well, you can fix that problem by adding your handwritten signature to business communication. It has proven to amplify response rates significantly since it convinces recipients of the realness of the person behind the correspondence.

Moreover, a handwritten signature in business communications improves the message’s credibility. So while your advertising team sets a budget for the volume of print media or emails you send, you can work on including your handwritten signature in those.

Trust us; ads become more profitable and likely to convert leads into worthy clients when you make your message seem personalized. Personalization is a foolproof way to improve response rates, drive conversion and boost business.

One fact that has become obvious over the years is that businesses can seem like robotic conglomerates in e-commerce. And frankly, no matter how compelling it may seem, no one likes engaging with robotic corporations.

E-commerce business owners can simply solve that with their human signature in digital messages. It will encourage clients to respond, but the handwritten signature would assure them they are dealing with real people, not machines.

4. Adds Professionalism and Class to Emails and Business Communication

There’s no denying that handwritten signatures carry infinite charm and class. It also appears very professional when business owners sign on business communication. If you wish for your business correspondence to look professional and classy, here’s what to add:

  • Your name and company position
  • Your handwritten signature
  • Legal disclaimer
  • Contact information of your company
  • Brand logo and name

Final Thoughts

E-commerce is a competitive landscape, with businesses of all sizes present on it. In the crowd present online, it can be quite challenging to grab the attention of your target audience and desirable clients.

However, you only need to create a handwritten signature to give your e-commerce presence significant leverage. From a touch of personalization to appearing professional and authoritative, a handwritten signature on online business correspondence can provide many benefits.

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