Online shopping is dominating the free market, gaining even more popularity during the COVID-19 pandemic.
The first half of 2021 saw a 48% global boost in online shopping apps. As we become even more reliant on e-commerce, scammers take advantage of the situation.
How do you keep your hard earned money out of the hands of these fraudsters?
In this article, we’ll talk about what customer fraud looks like, and the steps to spot a fraudulent web store.
The basics of customer fraud
Before we take a look at the signs of transaction fraud, let’s cover the basics. First, we’ll discuss what this type of fraud is, and how you can avoid it.
What is customer fraud?
Known as payment, transaction, or customer fraud, scammers aim to steal users’ funds and payment data.
This is usually achieved by:
- Imposter websites
- Falsified payment pages
- Money-back guarantees
- Simply not sending you the goods you paid for
A 2020 UK government survey witnessed a 78% increase in fraud against large businesses. With fraud getting more sophisticated every year, just how are you supposed to spot them?
How to Spot a Fake Online Store?
Although cybersecurity practices will prevent a multitude of scams, they can’t hide your data from a fraudulent payment platform. Here are the red flags to be aware of to mitigate customer fraud.
1. HTTP or HTTPS?
Move your gaze to the very start of the website’s domain name. Does it start with an “http://”? HTTPS hosting, rather than HTTP, ensures a higher level of security with payments.
The extra “s” actually stands for secure – sites with HTTPS have a Secure Sockets Layer certificate installed. This is a simple measure that can save you from the majority of scams, though it isn’t a guarantee.
2. Check the spelling of the domain name
Phishing sites love posing as legitimate, well-known websites. A quick look at the domain name can tell you a lot about the legitimacy of the site. Funnily enough, “amazon.com” shouldn’t be spelled “amaz0n.com”.
Similarly, poor spelling or obvious mistakes across the entire website also signify a fraudulent store. Scammers put these websites up incredibly quickly, so mistakes are bound to show up.
3. Is the deal too good to be true?
Gut instinct plays a role too. Unbelievable deals may seem that way because they aren’t real. Appealing to the consumer’s hip pocket is a popular way to trick victims into sending payment data.
If something feels a little fishy, trust your intuition and back away. There’s a good chance you wouldn’t even receive the product you scooped up for a bargain.
4. Look for secure payment methods
In the age of digital wallets, blockchain, and secure payment technology, it’s rare to find a website that doesn’t at least offer PayPal. These options provide added layers of security for both the merchant and the customer.
The vast majority of fraudulent payment platforms will require your credit card or bank information. Using cryptocurrency or secure payment methods like PayPal isn’t guaranteed against fraud, but it’s a big step in the right direction.
5. Run a background check on the website
The on-site investigation is crucial, but a background check can provide some important information. Place the domain name into tools like the WhoIs Lookup domain tracker for more data about the website.
You’ll see information like:
- Name of the registrant
- Date of website creation
- The country of the registrant
- IP address and IP location
The age of the site is of extra importance, as scammers put these sites together on short notice. The extra data also helps with further research.
6. Google for website reviews
There are tonnes of review pages throughout the internet – even reviews just for websites and stores. Just search the domain name in addition to the words “review”, and look for genuine customer reviews.
Any mention of scams or fraud will become obvious if the business has been around for long enough. Put your trust in well-reviewed shops and payment platforms.
7. Try to contact the business
If you’ve made it this far, you’re probably still suspicious, but none of these red flags have shown up. Your final test of a fraudulent platform should be their contact methods.
Do they offer multiple ways to reach them? If not, they may not want to be contacted. Call or email the business to judge the legitimacy of its workers and owners.
How to protect your private payment data?
The key element to fraud preparedness is strong personal cybersecurity. Arm yourself with antivirus software, a Virtual Private Network (VPN), and safe search browser extensions.
In particular, the use of a VPN is a lifesaver regarding payment fraud. When you make a purchase, your payment data passes through a VPN server, disguising your data in transit. Anyone hoping to catch your details on its journey will only see a bunch of encrypted code.
Conclusion
Getting caught in a payment scam can get really annoying. Freezing accounts and requesting refunds is no one’s idea of a fun Friday night.
Heed the steps listed here to ensure you never fall for customer fraud.
