E-commerce: How you can reduce the risk
As workplace technology continues to evolve, organisations across industry lines have begun digitising their operations with e-commerce. In fact, recent data found that the UK ranks as one of the top three largest e-commerce markets in the world, totalling over £80 billion in annual online sales. And although offering digital transactions provides numerous benefits—more efficient operations, an expanded customer reach and bolstered productivity levels, to name a few, e-commerce can also create serious risks.
Indeed, insurance experts reported that instances of e-commerce fraud in the UK have doubled since 2012. This form of online fraud occurs when a criminal conducts a digital transaction with a stolen or fake payment method, leaving businesses like yours without compensation for a product or service. Especially in the age of the GDPR, it’s vital to protect your organisation from e-commerce fraud concerns. Consider this guidance to ensure successful online transactions:
- Know the signs—Because fraudsters can hide behind a screen during purchases, it can be difficult to detect e-commerce crimes. Nevertheless, be sure to familiarise yourself and your staff with these common indicators of a fraudulent transaction:
- First-time customers or customers from unusual locations
- Large orders, including large quantities of one product
- Multiple shipping addresses or payment methods
- Several different transactions in a short period of time
- Unusual punctuation or capitalisation of payment information
- Bolster security measures—A major component of preventing e-commerce fraud is ensuring effective online security measures. First, make sure your website has the proper controls to prevent hackers from infiltrating your product ordering system or stealing past customers’ payment information. In addition, choose a trusted payment processor for credit card transactions and consider installing additional fraud detection software.
- Ensure regulatory compliance—Regularly review your e-commerce operations to confirm compliance with relevant regulations, such as the GDPR and Payment Card Industry Data Security Standards.