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Published On: Wed, Mar 14th, 2018

How Magento Faces Ecommerce Fraud Problems

A growing concern of online fraudulent behavior has cost a number of businesses a huge amount of money. According to the Association of Certified Fraud Examiners (ACFE) in the Global Fraud Study 2014, organizations lose a median of 5% in their revenues annually due to fraud. Globally, this translates to $3.7 trillion losses.

photo/ screenshot YouTube

Fraud is not only prevalent among independent online shops but also among retailers that depend on ecommerce platforms such as Magento. Because fraud is a serious issue, security should be one of the most important part in any Magento development services.

Online Fraud Issues

Magento is the current leading platform that deals with open commerce innovation. They are globally recognized and trusted in the e-commerce community. For years, they have collated data that give a glimpse of how bad fraud is costing many businesses. Here is a summarized list of points about online fraud:

 

  • Fraud losses have risen to an average of 8 percent since 2016.

 

It seems like constant data leaks have aided in the rise of money loss among businesses. Why? They are giving criminals a solid foothold for fraudulent behavior.

 

  • Digital retailers become their own worst enemy.

 

Stronger safeguards in their online stores have led to costly false declines. There are orders that are legitimate but are not shipped due to being incorrectly flagged as fraudulent.

 

  • E-commerce merchants lost up to $8.6 billion due to false declines.

 

Many incidents relating to false declines have occurred due to the premature course of setting up tougher security.

 

  • Due to false declines, negative feedback from customers lead to more loss of money.

 

Lee Hadsock, Head of Partner Development at Signifyd, says, “I can’t really think of a much worse customer experience than getting the buyer all the way to check out and then you don’t let them complete the purchase.”

How Magento Development Services is Facing the Problem Head On

Because a lot of ecommerce sites depend on Magento, the company feels like they have the responsibility to safeguard those who trust in them. They have offered some solutions to fight fraud.

By working in partnership with Signifyd, retailers can enjoy a stress-free process in setting up their online stores. Since Signifyd also implements tight security measures, there’s less risk of exposure to fraud. Thus, retailers no longer need to worry about false declines, fraudulent orders, evaluation of orders, setting up delivery times, and reaching more channels and platforms.

With the Magento and Signifyd partnership, they have proven their mettle in the fight against fraudulent actions. The work these two companies do is vital to the protection and success of their customers.

Conclusion

Security is a commodity highly sought after in this day and age. Trust earned due to the quality of service a company provides is especially relevant to its success. Starting a business online is now looking more appealing thanks to the partnership between Magento and Signifyd. Now, retailers can focus on growing their stores with one less thing to worry about.

Author: Lee Sadaowski

About the Author

- Writer and Co-Founder of The Global Dispatch, Brandon has been covering news, offering commentary for years, beginning professional in 2008 on sites like Examiner and blogs: Desk of Brian, Crazed Fanboy. Appearing on several radio shows, Brandon has hosted Dispatch Radio, written his first novel (The Rise of the Templar) will be a licensed Assembly of God Pastor by the Spring of 2017. "Why do we do this?" I was asked and the answer is simple. "I just want the truth. I want a source of information that tells me what's going and clearly attempts to separate opinion from fact. Set aside left and right, old and young, just point to the world and say, 'Look!'" To Contact Brandon email [email protected] ATTN: BRANDON

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