As a small business owner, have you ever been overjoyed to receive multiple orders in a day only to realize that most of them are from an obscure location and placed within a short timeframe? Well then, chances are that a scammer is at work. E-commerce fraud has evolved and is no longer restricted to fraudsters using stolen cards. With online shopping on a rise, scammers are using novel ways to steal from businesses and customers alike. E-commerce retailers may have lost over $20 billion in 2021 due to online fraudulent activities, according to Juniper research report. This loss would represent an 18% increase, compared to $17.5 billion, recorded last year.
Diving deep into e-commerce fraud
The term e-commerce fraud is pretty self-explanatory. It occurs when fraudsters use fraudulent means to make purchases and leave the merchant without payment for the sale. But the loss is much more than just the cost of the product as merchants also spend to acquire customers, accept a credit card payment, and ship the product.
When there’s fraud, not only does the merchant lose money to pay for these typical expenses – there are extra costs that stem from the fraud itself. Let’s say a scammer comes to a merchant’s site and orders a bag, provides a bogus address and chooses cash on delivery as his mode of payment. The merchant ships the bag but it is returned due to an incorrect shipping address. The merchant, therefore, loses the money spent on shipping, packaging plus the bag in transit is not available for a real customer to buy. A potential customer may end up shopping elsewhere if the bag they wanted is out of stock leading to a lower customer conversion rate. If the merchant decides to add more friction points to counter such frauds, the tedious process may lead to more customers dropping out.
So how can one walk the thin line between fraud prevention and customer satisfaction? It’s actually quite simple. By having proper fraud risk mitigation measures in place and investing in the right e-commerce fraud prevention solutions, it is possible to make a big difference in customer safety and conversions.
Meet Bureau Shopping Guarantee
Introducing Bureau Shopping Guarantee(BSG), a solution that helps merchants sift through customers and pre-empt such frauds. BSG’s AI/ML-powered Return to Origin (RTO) and chargeback protection eases transactions for good users and introduces friction for risky users. It identifies abusers by accessing their past buying behavior, successful deliveries, and instances of returns. It instantly evaluates risk, approves or declines transactions to eliminate chargeback fraud. Additionally, it comes with ‘100% RTO Protection’, a guarantee on RTO orders for trustworthy customers across Bureau’s Trust Network. While your customers get a smooth checkout experience, you can breathe easy as we take care of your risks.
Leverage BSG to counter e-commerce fraud
Verifies Shipping Addresses
Smart shipping decisions and delivery probability based on the completeness of the address.
A dynamic COD checkout option to detect risky users and boost prepaid conversions.
Unlocks Historical Buying Behavior
Identifies abusers using past buying behavior, successful deliveries, and instances of returns.
Identifies Risky Users
Creates a risk profile of users based on user inputs, device attributes, and data from telcos.
Instantly evaluates risk, approves or declines transactions to eliminate chargeback fraud.
Use Bureau's solutions and grow your business
Single account across different brands, fast checkout solutions, and actionable pre and post-order risk assessment is the need of the hour for brands. Understanding your users better and assessing the risk associated with every order in real-time helps brands grow their GMV while capping their losses. Talk to us to learn more about how you can prevent fraud and boost users & GMV simultaneously.