E-Commerce Scam
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What is E-Commerce Scam?
Ecommerce Scam is a form of cybercrime that occurs with online customer transactions. Malicious actors deceive businesses and customers to gain unauthorized access to personal and financial information, conduct fraudulent transactions, or otherwise exploit the online retail environment for their own gain. This type of fraud can cause significant financial losses for both businesses and their customers, as well as reputation damage to the businesses and industries involved.
Ecommerce Scam is a form of cybercrime that occurs with online customer transactions. Malicious actors deceive businesses and customers to gain unauthorized access to personal and financial information, conduct fraudulent transactions, or otherwise exploit the online retail environment for their own gain. This type of fraud can cause significant financial losses for both businesses and their customers, as well as reputation damage to the businesses and industries involved.
Types of E-Commerce Scam
1.Identity theft
Identity theft occurs when a fraudulent actor uses someone else’s personal information, such as their name, address, or credit card details, to make unauthorized purchases or open accounts.
2.Credit card fraud
Credit card fraud is a type of ecommerce fraud that involves the unauthorized use of a credit card to make purchases online. It occurs when a fraudulent actor obtains a victim’s credit card information and uses it to make fraudulent purchases.
3.Chargeback fraud
Chargeback fraud, also known as “friendly fraud,” occurs when a customer makes a purchase using their credit card, receives the product or service, and then disputes the charge with their credit card company to obtain a refund. This type of fraud is sometimes labeled as “friendly” because the customer may not have malicious intent, but rather disputes the charge for invalid reasons.
4.Phishing and social engineering
Phishing and social engineering tactics involve fraudulent actors using deceptive emails, messages, or websites to trick users into providing sensitive information or credentials, which they can then use to commit fraud.
5.Account takeover fraud
Account takeover fraud is a type of ecommerce fraud that occurs when a fraudulent actor gains unauthorized access to a customer’s online account and uses it to make purchases or carry out other fraudulent activities. This type of fraud is often accomplished through phishing attacks or social engineering tactics that trick the victim into revealing their login details or other sensitive information.
6.Refund fraud
Refund fraud occurs when a fraudulent actor poses as a customer and requests a refund for a product or service they never purchased and aren’t entitled to a refund for—often by providing fake order details or using stolen account information.
7.Affiliate fraud
Affiliate fraud occurs in affiliate marketing programs, where a business pays affiliates a commission for promoting its products or services. Affiliate fraud happens when affiliates engage in fraudulent activities to earn commissions that they are not legitimately entitled to.
8.Counterfeit or fake products
Counterfeit or fake products are often intentionally produced and sold under false pretenses, often using a brand name or trademark without the authorization of the original manufacturer or owner. These products can range from luxury goods, such as designer handbags and watches, to everyday items, such as electronics, cosmetics, and pharmaceuticals. Counterfeit products can be difficult to distinguish from the real thing, and customers may unwittingly purchase them online, believing they are buying a genuine product. This not only results in financial losses for the customer but can also have serious health and safety implications—particularly in the case of counterfeit pharmaceuticals, cosmetics, and electronic devices.
9.Drop shipping fraud
A drop-shipper is a retailer who does not keep physical inventory of the products they sell. Instead, they fulfill orders by purchasing products from a supplier or manufacturer, which ships the product directly to the customer on behalf of the retailer. This allows the retailer to avoid the costs and complexities of storing and managing inventory and to focus on marketing and selling products. Drop-shipping fraud occurs when a drop-shipper engages in deceptive practices to scam buyers or other businesses in the supply chain. This can involve various fraudulent activities, such as misrepresenting the quality or availability of products, failing to fulfill orders, charging excessive fees or prices, or using stolen credit card information to make purchases.
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