Author: Vesta E-Commerce Blog

As more users adopt them, fully digital payment methods like e-wallets are becoming increasingly vulnerable: fraud can creep in before and during transactions. More than 140 million people adopted digital wallets in 2019 globally. This number is only projected to increase in the coming future as consumers continue to shift towards buying from online retailers rather than brick-and-mortar stores. Each year, physical credit and debit cards become more and more unnecessary. If your business accepts payments from digital wallets (like Apple or Android Pay), it’s critical that you have the proper security measures in place to ensure safe transactions for your customers.…

Failing to prevent criminal fraud makes it harder to address other threat sources that can potentially cause chargebacks. If you’ve operated in the eCommerce space for any significant length of time, you’re probably familiar with credit card disputes, commonly known as chargebacks. These bank-level payment reversals are more than minor inconveniences. Each chargeback results in lost revenue and added fees. Over time, they may even constitute a long-term threat to your business’s survival. In this article, we’re going to address why chargebacks happen. We’ll also discuss a key reason why many merchants fail to effectively manage them and highlight why…

E-commerce retailers deal with an average of 206,000 web attacks per month. Understanding the various types of e-commerce fraud is essential if you want to know how to effectively stop them. As consumers continue to shift towards purchasing products primarily online, small businesses are having to adapt to these changes and accommodate the preferences of their customers. The COVID-19 pandemic forced retailers to embrace online shopping channels, creating meteoric growth for the e-commerce industry in 2020. This was great news for suffering economies, but concerning for retailers who were inexperienced with running an online business, unaware of the potential threats posed…

The cost of chargeback claims can quickly add up for an online retailer. In this article, learn about the single most effective way to overcome the challenge of chargebacks. At this point, there’s no denying that the cost of card-not-present (CNP) fraud is increasing quicker than anyone anticipated. By 2023, it’s projected that global yearly losses associated with CNP fraud will reach as higher as $36 billion. In the U.S. alone, fraud losses are projected to reach $12 billion by that same time. Fraudulent chargeback claims make up a large percentage of that total cost, and they’re unfortunately something that nearly every online retailer…

As we head into the holiday season, we’re projecting a significant increase in fraud attacks targeting eCommerce businesses. In this article, learn how to protect your business from the threat of fraud. In 2020, consumers spent $861.12 billion online with U.S. merchants alone – an increase of 44% from the year prior. The same research also found that this was the highest annual rate of eCommerce growth in the U.S. for at least two decades, and was triple the 15.1% growth seen in 2019. Salesforce’s 2020 Holiday Shopping Report found that there was a 50% increase in digital spend over the 2019 shopping season,…

By understanding how chargeback fraud occurs and how costly it can be for your online business, you can take the necessary steps to prevent it. Did you know that credit cards are the most common payment method identified on all fraud reports? And if you’re dealing with chargeback fraud, the problem is even more insidious than a stray credit card charge. The cost of chargeback fraud is much greater than most merchants would assume. Between chargeback fees, transaction fees, and the cost of losing merchandise, chargebacks can be detrimental to any online business. In this article, we’ll take a closer look at…

Buy now, pay later (BNPL) payments have become the latest target for fraudsters. In this article, explore why BNPL is becoming a difficult (and costly) service for merchants to offer. Offering “buy now, pay later” payment options is the latest trend for eCommerce businesses. On the surface, it seems like a great idea. If a customer doesn’t have the funds to pay for a product in its entirety at the time of purchase, they can split the payment into four separate installments. BNPL payments are appealing to consumers because unlike using a credit card to buy something, they don’t need…

Machine learning plays a pivotal role in effective fraud prevention systems. In this article, learn how machine learning can significantly improve your business’ ability to stop fraud attacks. With the recent surge in e-commerce usage globally, the possibility of an online fraud attack is at an all-time high. e-commerce retailers stand to lose over US$20 billion in 2021 due to online fraudulent attacks. This would represent an 18% increase in fraud losses compared to the US$17.5 billion recorded in 2020. Customers want to have the assurance that they can purchase products without experiencing a false decline, and merchants want to…

Making the decision to take your eCommerce business global can be a lucrative one, but also introduces a higher risk of fraud attacks. In this article, learn how to protect your business from fraud when selling internationally. There’s no better time to start an eCommerce business than now. It’s estimated that there will be 2.14 billion global digital shoppers in 2021. That number is only projected to increase as a growing number of consumers switch to using online channels to purchase essential products. However, along with this increase in consumer spending, there’s been a dramatic spike in card-not-present (CNP) fraud.Global CNP fraud has…

In this article, learn about what promo abuse fraud is and the steps you can take to prevent it from hurting your company’s bottom line. According to the most recent Association of Certified Fraud Examiners (ACFE) report, U.S. businesses lose approximately 5% of their gross revenue to fraud each year. Small businesses are hit the hardest due to a lack of internal controls. One tried and true method of growing your customer base is to offer discounts and/or free products and services to your target market. However, unless proper measures are taken to protect a business from fraud attacks, these…

From phishing to wire transfer scams, there are many clever types of payment fraud that eCommerce merchants need to be aware of. In this article, learn about the four most common types of payment fraud. Payment fraud is a serious concern for most eCommerce business owners. Fraudulent transactions are costing companies more money every year. In 2020, card-not-present (CNP) fraud cost online merchants an estimated $35.54 billion globally. That number is only projected to increase as eCommerce becomes the primary channel for purchasing goods and services. Knowing how to avoid payment fraud and how to counteract its nefarious techniques is…

Your e-wallet, online voucher, or online gift card may be vulnerable to fraud. Notice the signs and take precautions after reading this guide. As the world struggled with the COVID-19 pandemic in 2020, e-fraud has boomed. Mid-to-large sized American e-retailers of digital products have been hit the hardest. They’ve suffered an average of 650 fraud attacks each month in 2020. Using e-wallet, online vouchers, and online gift cards increase payment fraud risks. Businesses must take action to fight back. Keep reading to learn five ways that your business can fight back. What Is an e-Wallet? Digital wallets or e-wallets let customers buy products…

This article takes a closer look at how much fraud is really costing merchants, and what companies can do to better balance their acceptance and fraud rates. When it comes to eCommerce fraud management, businesses tend to focus on the direct financial hit from chargeback remediation rather than examining their fraud problem holistically. Beyond the financial impact that fraud attacks have on a business, there are a variety of indirect costs that can negatively impact a company’s ability to scale.   In this article we’ll be looking at the key costs associated with eCommerce fraud, and how businesses can effectively manage their fraud problem to maximize approval rates and eliminate…

Fraud prevention requires constant vigilance in order to stay ahead of emerging fraud trends. Here are 5 ways you can protect your business from fraud attacks in 2021. Online and card-not-present (CNP) transactions have increased during the COVID-19 pandemic. Experts predict this trend will increase by 21 percent in 2021. By 2040, CNP payments will reach 95 percent. While online buying is very popular, it increases fraud risk. In 2020, CNP fraud costs companies $35.54 billion worldwide. With the threat of payment fraud accelerating faster than ever before, it’s important that you stay up-to-date with the latest fraud prevention trends so you know…

Vesta’s General Manager of Asia Pacific, Shabab Muhaddes shares his thoughts. Southeast Asia is home to the world’s fastest growing e-commerce markets, and that growth is coming exponentially. In 2017, a Google-Temasek report foresaw a $200 billion internet economy in the region by 2025 – but by 2019 it was already past the $100 billion mark. There are 360 million internet users in Southeast Asia, and 90% of them connect primarily through their mobile phones. More than 40% of consumers in the region use mobile devices several times a week for e-commerce, and nearly half have at least two active…

Fraud solutioIn this article, learn the key questions you should consider when searching for a fraud solution for your business. Did you know that 27% of online sales end up being fraudulent? As more and more businesses are relying on ecommerce platforms to reach their customers, fraudulent transactions are posing a significant problem to merchants in nearly vertical and market across the globe. To protect your business and your consumers, you need a fraud prevention solution that will identify and reduce your fraud risk. In this article we’ll be covering the three key questions to consider when choosing a fraud solution for…

Listen in to morning podcast from MoneyFM 89.3 and Vesta GM of APAC to learn about our expansion to South East Asia Listen in to Money FM 89.3 podcast with Vesta Breakfast huddle with Elliott Danker and Manisha Tank and Vesta GM of APAC, Shabab Muhaddes share how we are helping our clients grow approvals by eliminating the fear of fraud with Vesta’s ML/AI fraud technology in the Asia Pacic region First appeared on Vesta’s Blog on eCommerce Fraud.

Inaccurate fraud prevention solutions can have a negative impact on your  cart abandonment rates. Learn how to prevent this problem from affecting your ecommerce website. With card-not-present (CNP) fraud on the rise, many merchants are seeking out fraud prevention tools to protect their businesses from being affected. The problem is, many of these tools use rigid rulesets to identify fraudulent transactions and often end up declining legitimate orders from going through. Inaccurate fraud solutions can end up causing more harm than good, and often result in a negative impact on your website’s cart abandonment rate. In this article, we’ll explore…

Learn how to protect yourself against the rising threat of SIM card swap fraud. Mobile phones and other devices have become integral to business, education, and socialization. According to research conducted by Deloitte, mobile phone penetration is at 91% in developed countries, and 90% in developing countries. Mobile phones have become an integral part of daily life in nearly every country around the world. Each of these mobile devices contain a physical SIM card and there is a growing trend towards the use of dual SIM devices (both physical and or eSIM). Dual SIM card device usage is most prevalent in India (66%) and…

Fraud prevention should never interfere with the customer experience of a website. Learn how to find the right balance between stopping fraudulent transactions, and providing your customers with a seamless purchasing experience. It’s impossible to overstate the risk of fraud to companies and consumers, especially as the eCommerce and digital wallet industries experience tremendous growth. In 2020, nearly 50% of companies that participated in PwC’s Global Economic Crime and Fraud Survey reported that they’d dealt with fraud in the last two years. The total cost of this fraud was estimated to be around $42 billion. These numbers demonstrate that fraud…