As the popularity and trust of people in eCommerce stores is increasing day by day, the cases of fraudulent activities have also elevated in parallel. Year after year, the internet is getting exposed to new eCommerce risks and payment frauds. In fact, in the US itself, the growth rate of eCommerce frauds is almost twice the growth rate of eCommerce sales. To be exact, sales growth was 16% in 2017, while the same time-frame reported a 30% rise in eCommerce frauds (source).
E-Commerce fraud occurs when shoppers purchase products from web-shops with unauthorized payment mediums. Buyers use dark methods to purchase a product without actually paying for it. With an aim to purchase a product for free, buyers might use the methods like-
Payment frauds by customers is just an example of B2C frauds. As an eCommerce business, you are exposed to B2B eCommerce scams as well. Not just your customers can scam you, but your B2B partners like logistic, affiliate, or drop shipping partners can similarly leverage the loopholes to commit complex eCommerce frauds. So, yes, eCommerce fraud is not just limited to scams by customers.