KYC Verification and Black Friday – Tackling E-Commerce Fraud Risks

Black Friday is not only an event for exclusive e-commerce deals but also for various scams. Fraudsters cash this opportunity either by blending in with the holiday rush or coming up with phony offers, fake shipping notices, and bogus charity occasions. Furthermore, cybercriminals make efforts to not only exploit customers but also e-commerce platforms. They create malicious websites and direct users through phishing or malware links. 

E-commerce businesses encounter both financial instability and reputational damage due to scams involved in Black Friday sales. Therefore, to combat illicit actions, online retailers need to strengthen their KYC verification mechanisms. This is a crucial step to restrict bad actors and provide a secure shopping experience. This article discusses top Black Friday scams and how digital KYC verification solutions combat them. 

Online Shopping Scams to Look Out for in 2022

Retailers and e-commerce businesses all over the globe are preparing for Black Friday, the largest online spending day. In 2021, customers spent $9.03 billion during this event and yet the number will noticeably increase in 2022. Therefore, merchants are looking to cash in every opportunity that will bring more customers. In all this awe, e-commerce platforms should also pay attention to their KYC verification mechanisms. 

Increasing traffic brings more revenue, however, it also accelerates retailers’ chances of encountering fraud risks. The next section outlines major scams that exploit e-commerce platforms during Black Friday hype. 

Bogus E-Commerce Websites 

A classic fraud that massively emerges during Black Friday, is “typosquat” where scammers create websites that look believable. However, they contain mere phony addresses and URLs. Links to these malicious e-commerce platforms are sent out through phishing emails, messages, or social media posts. As soon as customers click, the URLs direct them to fake websites where scammers have designed various bogus deals to attract users. 

In order to avail more Black Friday discounts, customers provide their personal information after which they get nothing but exploitation of their bank accounts and other crucial details. 

E-commerce platforms require KYC verification solutions to attract more clients and limit them from becoming a victim of scammers. This way, it will be easier for customers to distinguish between malicious and authentic websites. E KYC verification solutions hence enable legitimate e-commerce businesses to stand out in several phony shopping platforms. 

Fake Package Tracking Notification

Scammers employ another technique to get their hands on customers’ personal information which they later use for various illicit activities. Fraudsters create a fake message with a link or attachment. After opening either of them, malware is injected into customers’ systems and scammers steal all the required information. 

E-commerce platforms with robust KYC verification solutions do not send messages with links or attachments. They have customer details stored and ship packages accordingly. During KYC verification, customers provide their contact information and receive system-generated updates regarding their parcels. Therefore, to make their website look more real, e-commerce platforms need to enhance their IDV solutions.

Fraudulent Orders for False Chargeback Claims 

During Black Friday sales, fraudulent orders and false chargebacks claims are the most prominent scams. Fraudsters use counterfeit addresses to misguide e-commerce platforms. Later they apply for false chargeback claims and leave online retailers with a loss of millions. Furthermore, fraudulent orders lead to wrong shipments and failed deliveries which costs e-commerce platforms to pay extra bucks for re-routing the parcels. 

Integrating KYC online verification helps online retailers to place a combination of authenticity checks to counter fraudulent orders. With identification and address cross-validation, e-commerce platforms fill in loopholes that pave the way for scammers. As a result, with KYC verification merchants can also prevent additional correction charges and false chargeback claims.

Read More – Metaverse Development Company in Dubai

Charity and Fundraising Scams

Online retailers often support charity or fundraising programs by either making a separate option for donation or taking out a particular portion of their earnings. In wake of this, Black Fridays serve as a catalyst as more customers are making their way to e-commerce platforms than usual. However, during these public-centered events, fraudsters get rid of their malicious money. By concealing their true identities, they easily donate huge sums through e-commerce websites and escape KYC AML scrutiny. 

In order to make charities and fundraising free from illicit funds, e-commerce platforms need to bring in efficient KYC verification solutions. They not only eliminate the chances of fraudsters participating in these events but also make sure the donations reach deserving individuals. This way, online retailers can not only ensure KYC compliance but also provide customers with secure shopping and fundraising opportunities. 

Final Verdict 

E-commerce platforms are in need of integrating automated KYC verification solutions to increase the prevention against scammers. Black Friday is an equal opportunity for customers to avail big discounts and scammers to make illicit purchases or steal clients’ details. However, with advanced KYC verification services in place e-commerce platforms can not only validate buyers’ profiles but also increase security against fraudsters.