E-Commerce fraud is a pervasive issue on online platforms, driven by the increasing volume of daily online purchases, which fraudsters exploit at an equal pace. The impact of fraud on an E-Commerce store can be devastating, causing significant financial losses and damaging its reputation. In light of this, adopting a robust fraud protection solution becomes essential to safeguard the business and its customers.
E-commerce fraud encompasses a wide range of malicious activities deliberately targeting online stores. The prevalent attacks often revolve around fraudulent transactions executed using stolen credit card information.
E-Commerce fraud happens when a fraudster succeeds in stealing a genuine user’s credit card information and then using them to perform a transaction. There are countless schemes of E-Commerce fraud such as account takeover, card testing fraud, chargeback fraud, refund fraud, and interception fraud.
Detecting E-Commerce fraud presents several challenges due to its constantly evolving nature and the diverse tactics employed by fraudsters. The increasing volume of online transactions makes it challenging to distinguish between legitimate and fraudulent activities accurately. Moreover, fraudsters continuously adapt their methods, making it difficult for traditional rule-based systems to keep up with new fraud patterns and behaviors. As a result, businesses need advanced solutions that leverage sophisticated algorithms and behavioral analytics to detect fraudulent transactions effectively and protect their customers’ financial well-being.
XTN’s Cognitive Security Platform® offers a comprehensive and unique solution to combat E-Commerce fraud effectively. Our E-Commerce module provides continuous monitoring of payments generated by both physical and virtual POS systems, catering to both acquiring and issuing needs. Leveraging real-time fraud protection and user behavior risk analysis, our platform identifies patterns of fraudulent activity based on user and merchant profiles.
The XTN E-Commerce Fraud Protection solution covers the following main areas of analysis:
Consequences of eCommerce Fraud can impact a digital business by:
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