2 Types of Fraud You Need Know About

Online shopping has reinvented how people shop around the world. From two-day shipping to getting groceries delivered to having a box of clothes sent your way each month without ever stepping foot in a store, the world has turned a new leaf on retail, grocery and shopping in general. Instead of taking the time to visit a mall or department store, people opt for the easier and more convenient option of just browsing from home in their comfy pants. In a world run by technology, there are more chances for ecommerce fraud to affect people. If companies don’t employ a proper chargeback management system, and consumers don’t stay alert, hackers can run off with hard-earned money and products with no repercussions. Here are two types of fraud everyone should know about to be better protected and safe in an online world.

1. Promotion Abuse Fraud

As a business owner, it’s fun and innovative to offer promotions and other special offers to keep customers excited and committed to shopping at your store. However, how can companies be sure they’re not getting taken advantage of? In this type of scam, a hacker ends up redeeming promotions and special offers way more than what’s intended for each customer. When someone goes to claim a promotion or special deal, they usually have to provide an email address or phone number to redeem the offer. A business should keep their eyes peeled for multiple promotions going to the same email. A business can also employ technology that’ll kick someone out of their system if they try and use the same email twice. There are multiple ways to address this problem, but finding one that works is essential because getting taken advantage of isn’t good for anyone.

2. Compromised Email Fraud

This type of fraud doesn’t start with financial problems but ultimately ends that way. In a phishing scam, a hacker gets access to a company’s email server and starts analyzing, monitoring and learning the company’s communication style and format. After a certain amount of time, the hacker will start sending emails posing as a CEO or executive and asking other employees to transfer money into certain accounts. An employee would never question a CEO’s intention, so they’d do as instructed. It can severely drain a company’s finances and leave a business left to try and figure out where this problem started.

Whether it’s through communication scams or actual shopping scams, hackers have invented numerous ways to hinder credibility and safety in an online world. The more you know about different types of scams, the better prepared you can be to stay safe but still connected to society online.


Natraj

Natraj Studied bachelor's degree in finance and business from Telangana University, Nizamabad. A Writer based In India, He has a degree in Charted Accounts and has very knowledgeable in credit repair and Banking Sectors. So, I decided to start a blog and share my knowledge to the visitors.

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