Has The Percentage of Online Shopping Scam Victims Dropped to 74%?
At the start of Covid-19, the number of online shoppers who lost money after being duped by online scammers increased.
However, according to a report released on Monday, the percentage of online shopping scam victims who lose money has dropped to 74% globally, down from 78% in 2020. According to a Bankless Times analysis, the rise of ecommerce has increased the possibility of fraudulent activity.
The Covid-19 crisis caused an increase in online transactions. The pandemic provided con artists with an entirely new opportunity to defraud users. Online retailers worldwide experienced a variety of fraud schemes in 2021. However, the “friendly fraud” scheme was by far the most common.
Clients purchased goods online and then filed claims with their banks, claiming that the sales did not take place. They did this to fraudulently recover their money. Latin America and Asia-Pacific had the highest number of fraudulently accepted online orders. These were aimed at unsuspecting online retailers.
Because of the presence of online fraudsters, the need for online retailers to manage these attacks has never been greater. So far, more than nine out of ten businesses believe that combating E-commerce fraud is essential to their success. According to Jonathan Merry of Banklesstimes.com, who commented on the data, “the number of victims is decreasing.
” The restoration of normalcy after Covid-19 might be a factor.” He went further to hint that retailers might also be heightening their alertness. “Retailers are also cautious, making it difficult for fraudsters to carry out their schemes.” The rise of E-commerce has increased the likelihood of fraudulent activity.
The COVID-19 crisis caused an increase in online transactions. The pandemic provided con artists with an entirely new opportunity to defraud users. Since 2019, approximately three-quarters of online traders worldwide have reported a net increase in fraud attempts.
The industry then experienced a wave of security breaches in 2019. It lost an estimated $20 billion USD that year as a result of fraudulent online payment system activity. As a result, it spawned a market for detecting and preventing fraud in online commerce. According to BanklessTimes, that market will be worth $70 billion by 2025.
The rise and fall of online shopping scams
Scammers pose as legitimate online sellers, either through a fake website or a fake ad on a legitimate retailer’s website. While many online sellers are legitimate, scammers can take advantage of the internet’s anonymity to defraud unsuspecting customers.
Scammers use cutting-edge technology to create fake retailer websites that appear to be legitimate online retail stores. They may employ sophisticated designs and layouts, possibly stolen logos, a ‘.com.au’ domain name, and a stolen Australian Business Number (ABN).
Many of these websites sell luxury items like popular brand clothing, jewelry, and electronics at rock-bottom prices. Sometimes you’ll get the item you paid for, but it’ll be a fake, and other times you’ll get nothing at all. The method of payment is the most obvious indicator that a retail website is a scam.
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Scammers will frequently ask you to pay with a money order, preloaded money card, or wire transfer, but it is unlikely that you will see your money again or receive your purchased item if you do so. The use of social media platforms to set up fake online stores is a newer version of online shopping scams.
They open the store for a limited time and frequently sell counterfeit branded clothing or jewelry. The stores vanish after a certain number of sales. They also use social media to promote their fake website, so don’t trust a site simply because you saw it advertised or shared on social media.
Before making a purchase, the best way to spot a fake trader or a social media online shopping scam is to look for reviews.
Scams about Online Shopping appear year-round. To prevent this kind of scam you can Contact Us for Support.
Maintaining vigilance from afar to combat fraud
Online retailers worldwide experienced a variety of fraud schemes in 2021. However, the “friendly fraud” scheme was by far the most common. Clients purchased goods online and then filed claims with their banks, claiming that the sales did not take place.
They did this to fraudulently recover their money. Latin America and Asia-Pacific had the highest number of fraudulently accepted online orders. These were aimed at unsuspecting online retailers. Because of the presence of online fraudsters, the need for online retailers to manage these attacks has never been greater.
So far, more than nine out of ten businesses believe that combating E-commerce fraud is essential to their success. Furthermore, more online businesses believe that their ability to defend against E-commerce attacks has improved over the past year. More than a third believe they could detect attacks sooner.
To detect fraud, dealers have sought to use the card verification number and email verification. Both of these tools have proven to be extremely useful in this regard.
Scam has an impact on the client's experience.
If retailers have felt the financial impact of cybercrime, then clients are not far back either. In recent years, the percentage of online sales scam victims who lost money has not fallen below 70%. This proportion has remained relatively stable.
This scenario could harm retailers’ brands and clients’ trust in them. In 2021, less than 40% of clients in the United States, Germany, the United Kingdom, and France expressed confidence in traders’ ability to avoid fraud in online commerce.
Despite all these difficulties, there is still cause for hope. Offering protection from scams could encourage more people to use e-commerce. However, if they had insurance against this risk, eight out of ten clients in the United States would increase their frequency of online purchases.
How to avoid online shopping scams
Check to see if the website or social media page has a refund or return policy, and if their policies appear to be reasonable. In the event that something goes wrong, the better online shopping and auction sites have detailed complaint or dispute handling processes.
When using retail websites, make sure you know who you’re dealing with. When making online purchases, only use a secure payment service—look for a URL that begins with ‘https’ and a closed padlock symbol, or a payment provider like PayPal.
Think twice before using digital currencies such as bitcoin—they do not have the same provisions as other transaction methods so you can’t get your money back once you send it. Finally, report any suspicious activity or communications to the Chargebacking experts.
You can successfully keep your money safe with Cash and avoid scams by following a few of the steps identified by the professionals at Chargebacking.
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