Online payment frauds have become
commonplace, especially in the ecommerce domain. Separated by location and
geography, the distance and volume of transactions between buyer and seller are
other factors that have contributed to the phenomenal increase in the instances
of online payment fraud. However, there is widespread ignorance on the legal
machinery as well on the usage of various reporting tools that are available
for merchants to report online payment fraud. Some of the popularly existing
myths and the truths thereof have been discussed.
- Myth #1: Small businesses are not affected by complex online frauds
Truth: To report online fraud is
something that is a necessity for all businesses, regardless of size and volume
of transaction. In fact fraudsters are more active in perpetrating their fraud
in the small business domain since these businesses will not have a
full-fledged fraud management system in place.
- Myth # 2: To report online payment fraud is time consuming and ineffective
Truth: It is true that in order to
report online payment fraud, one needs patience and perseverance to get the
case resolved successfully. However, modern reporting tools and online
complaint procedures have been made user-friendly, provided the complainant can
provide accurate information and proof of occurrence of the payment fraud.
- Myth #3: Only human intellect can validate transactions for merchants
Truth: The myth is based on the fact
that scammers can find every possible way to circumvent systems using
fraudulent means. For example, it is possible for a buyer to order products
from the call center of a business using details from stolen cards. However, it
is now proven that technology has an answer to cases of buyer identity fraud.
Truth: Since online payment fraud is
associated with purchase and sale of products and services, people tend to
think that reporting online payment fraud and installation of fraud management
technology is not needed in other cases. The truth is that online payment fraud
affects even the Government, the healthcare industry, the aged and senior
people and even non-profit organizations
- Myth #5: Internet banking account of businesses are 100% safe from payment scams
Truth: Even when banks are taking
stringent measures to stay safe from internet scams, it is possible for major
payment frauds to occur by way identity fraud, which makes it possible for
scammers to hack into the bank accounts of individuals as well as businesses.
Scammers use advanced software to crack passwords and hack into mail ids and
bank accounts.
Busting all the above myths, it has
been established that online frauds cannot be erased overnight. Only persistent
attempts to report online payment fraud can check its perpetration. A possible
end can be attempted only if merchants take preventive measures as well as be
prompt to report online payment scams. Lack of awareness and lack of belief in
the law enforcement machinery have stopped thousands of merchants in handling
the scams themselves. This will not be very effective and it is only a matter
of time, before the scammer strike again using various criminal designs.
