According to a research from the Centre for Economics and Business Research, efficiencies gained by retailers through better fraud detection tools could reach $290 million from 2015 to 2020. The issue is that many SMBs only rely on payment gateway. Fraud is as much of a threat to smaller firms as large companies, so why are they lagging behind in prevention?
Fraud: from simple and opportunistic to complex and patient scenarios
From the same research, we learn that mature businesses with an efficient anti-fraud solution in place can expect to drive fraud down to less than 0.5% to its maximum. For SMBs, the level of fraud can reach around 5 to 9% of all transactions. It is representing an even larger part of revenue for fraudsters, as they tend to spend more, and would hit a small business even harder.
Indeed, if it can be easy for an SMB to spot a fake customers that is buying large numbers of items in a small amount of time, it is quiet difficult to stop various accounts making relatively small purchases in an extended period of time (8 tips to prevent eCommerce fraud). Blocking these connected purchases is not as easy and can be very harmful for large and small businesses.
Fraud is evolving, from simple and opportunistic to complex and patient ways. Fraudsters use more and more sophisticated tools and scenarios that are really hard to detect, as they gather both legitimate and compliant transactions and fraudulent activities.
Speed and agility are essential to fight against fraud
Fraud can affect businesses in a multitude of ways. Sometimes, a fraud can lead to a regulatory investigation and the cost can be severe, both financially and for the notoriety. For businesses, small and large, failing to implement anti-fraud measures is risky.
If implementing advanced cybersecurity tools to avoid fraud is often difficult, cloud solutions are you best option. When combating online fraud, speed and agility are essential. The ability of most organizations to respond to fraudulent activity was limited by the lack of technical skills and costly solutions. Now, cloud-based solutions have emerged to comply with eCommerce sites and SMB needs.
OZON magic takes care of all your eCommerce cybersecurity issues
OZON magic takes care of all! OZON also protect your online shop against common attacks (XSS, injection SQL, DDoS attacks) and fraud prevention. Stop fraud in its tracks, increase your ability to detect and prevent fraud with data and analytics.
OZON’s anti-fraud engine evaluates automatically each incoming orders regarding technical controls (terminal identity, geolocation, IP address, email address…) and consistency checks (user behavior, order content…).
You need to know more about our anti-fraud system? You will appreciate to read our last article entitled « How to detect and protect against eCommerce fraud“. You will learn how to prevent online fraud with a next generation anti-fraud technology that is really easy to use.