What Type of eCommerce Threats do Retailers Suffer from?

By: Retail CIO Outlook | Tuesday, February 11, 2020

Businesses are turning towards technology that will help them cater to the needs of the customers as well as reduce frauds in the system.

FREMONT, CA: Interruption of the same old method in the market is a good thing because it helps to generate space for innovation and ultimately leads to better service. However, new changes also create ample opportunities for the cybercriminal. Whenever a new strategy or technology is implemented in the market, cybercriminals instantly try to find a way to manipulate it so that they can use it for their own benefit.

Here are some of the most prominent digital threats that the world of business has to witness in this new decade.

The Consequences of Loyalty Program Abuse

The consumers get an incentive to purchase with those loyalty programs as they can use the rewards because, for the customers, the rewards are almost similar to cash.

The issue occurs when the cyber hackers use the account of the customers and steal their loyalty rewards since the consumers take the reward points as cash, so they do not receive such abuse kindly.

Hence it is vital that the platforms through which the users get access to the loyalty programs must have strict principles for login credentials. Businesses must urge their customers to update their passwords by using a compilation of numbers, special characters, and letters.

The Effect of BOPUS Fraud

Customers have rapidly made BOPUS their primary channel for purchasing goods. However, there are many such locations where the customers do not have to show their ID or the payment card while they are picking up their products. This type of situation can lead to account takeover fraud, where the criminals pretend to be the valid user and make purchases in that person’s name.

Therefore, businesses need to improve their customer verification and conformation that is generated on these platforms. For example, the application can ask the purchaser to show their biometric signature while they are picking up the orders.

The Numerous Recurring Billing Losses

Nowadays, customers are popular with the term subscriptions. It means having access to products or services on a regular basis without the necessary active involvement. The issue with such a subscription occurs when the users set and forgets about the account.

Naturally, a customer may forget to cancel the subscription and then file for a chargeback in the future. Furthermore, a person can get exhausted from a service and decides to stop the transaction of money instead of canceling. Most of the time, it results in an enormous loss of the past and future revenue.

There are some applications that can help to protect the transactions, but it is always better to follow the query and cancellation procedure because it is simple and straightforward. Not a single business is there who wants to lose their purchaser, but this situation is better than the ones where the buyer asks for a chargeback. It will also make the customers feel that canceling their services with the help of appropriate channels can be more comfortable, faster, efficient, and even better than asking for a chargeback.

The Effect of having Concierge Mentality

The businesses inadvertently have increased the expectations of the customers, and now it has reached to an ever-increasing standard, but there cannot be any expectations without responsibility.

Card issuers provide the consumers demand chargeback, and most of the time, it is done to maintain a better relationship with customers, thus allowing friendly fraud in the procedure.

However, IT professionals have inadequate resources, and due to this, they are unable to tackle the issue. The best process to solve this will be to generate a process that will keep a detailed and appropriate record, and it will also respond rapidly during any such disturbance.