Feb 122 min read

Types Of Online Retail Fraud

Updated: Feb 14

Name: Prerna Ghorpade, Rollno: 492, Group: 2 Online retail fraud has become an increasingly common concern for e-commerce businesses and consumers alike. As the popularity of online shopping continues to grow, so does the sophistication of fraudulent activities. It is crucial for both merchants and consumers to be aware of the various types of online retail fraud in order to protect themselves against potential threats. In this article, we will explore some of the most prevalent types of online retail fraud and discuss ways in which businesses and consumers can safeguard themselves against such fraudulent activities.

1.Payment fraud is a type of financial fraud that occurs when someone intentionally uses false or stolen payment information to make a purchase. For example, fraudulent actors might use stolen credit card information, create fake checks, or make unauthorised electronic fund transfers.

2. Account takeover fraud is characterised by unauthorised individuals taking over someone else’s online account, such as a bank account,email account,or social media profile, without the account owner’s consent.

3. Return fraud is an online scam that occurs when a person purchaese an item with a intention to return it back immediately. Sometimes the fraudsters also use duplicate receipts to get money back.

4. Phishing and spoofing in this the criminals obtain sensual information about you from websites or any other social media platform and give you customised phishing schemes to you and Spoofing means a person impersonates as an organisation to get sensitive information from you.

5. Card testing fraud is a type of fraudulent activity where someone tries to determine whether the stolen card information is valid so that they can use it to make purchases.

6. Affiliate fraud means any false activity conducted to generate commissions from an affiliated marketing program.

7. Shipping fraud occurs when a buyer fakes the shipping address or when a seller receives payment for goods or services, but never ships to the buyer.