Firoz Patel Says Complaints Reveal The True Extent Of Online Business Fraud

Online businesses are prone to frauds. If you run an online business then it is very important for you to understand cybersecurity risks and protect yourself and your customers form such frauds. According to Payza founder Firoz Patel, complaints most commonly received by online businesses are related to frauds like phishing, hacking and fraudulent transactions.

Even as businesses allocate more budgets for security and ramp up their defences against online frauds, cyber criminals are very creative in terms of coming up with new ways to carry out business fraud. There many different ways in which online fraud can be committed and they can be categorised into two main types:

Account Takeover

Today, almost all ecommerce stores offer an account to their customers to store their personal information and financial data. This helps the customers to quickly get started the next time they visit the site. It also helps the site to keep track of their customers. Fraudsters typically use phishing to get hold of this account information. They usually send an email to unsuspecting customers and trick them into revealing their username and password. They then use this information to get access to the user’s account. Payza has a dedicated blog that helps users understand how to safeguard their account information.

Identity Theft
All businesses store customer information in databases. Fraudsters hack into these databases and steal customer information such as username, password and credit card details. They sell stolen credit card numbers to scammers who then use it make unauthorized purchases.

To protect businesses from frauds the Payment Card Industry Security Standard Council has developed a set of best practices to safeguard customer data. In addition to online retailers, payment processors also completely handle PCI compliance.

What Can Businesses Do?

To avoid fraud, customers are advised to frequently monitor their accounts and transactions for any inconsistent billing or incomplete shipping information. Businesses can also use tools to track IP address of customers and check if they are from countries known as a base for fraudsters. They can also check if customers are using free or paid email service as the chances of fraud via a free service are higher than paid services. Another option is to put a limit on the number of purchases or the total value of money that is accepted from an account per day. All these precautions can go a long way in preventing online business fraud.

Firoz Patel Warns About New Scam

There’s a new scam going around that Firoz Patel, Payza Executive Vice President, wants to warn you about. People are calling it the “Are you there? Can you hear me?” Scam because those are the only question scammers need you to answer.

Firoz Patel explains the scam, “A fraudster will get you information and call you on the phone, but they’re not trying to get you to pay them, what they’re really looking for is a lot sneakier than that. In some cases, these scammers just want to record you saying ‘Yes’, and maybe some extra information like your name and other details they can use to authorize transactions in the future.”

online-security

Firoz Patel has seen this kind of scam before. “This isn’t really a brand new scam, but it is a very clever variation of a common scam.”

So what can people do to protect themselves? “It’s unfortunate, but people need to be less trusting when they pick up their phones. Most of us use caller ID these days, so if you don’t recognize the person calling you, it’s often best to let that call go to voicemail. Most legitimate callers will leave you a message and let you return the call. If they don’t, you should be suspicious about the call.”

The good news? “As people get more and more used to the security tools that are available with most modern technology, it gets a lot harder for fraudsters to successfully pull off these scams,” says Firoz Patel.

Firoz Patel suggests these scams are easy to prevent by enabling the extra security features your bank provides for credit cards, such as the 3-D Secure program.

3d-secure

But just because you can protect yourself, that doesn’t mean you can help catch fraudsters. “Unfortunately, the people who try to put these scams into action usually know how to cover their tracks. That makes it very hard for authorities to get an indictment,” says Firoz Patel.

What’s the best way to stop these scams according to Firoz Patel? “Make it so that scammers have more trouble making money off these scams than it’s worth it for them. Protect yourself, stay informed, teach your friends and family how to stay protected. These scams will probably never disappear entirely, but the harder it is to make money off of them, the less frequently you’ll hear about them”.