How Your Business Can Prevent Online Payment Fraud During the Coronavirus Pandemic
During the coronavirus (COVID-19) pandemic, when most companies in the U.S. have to rely on digital tools and online payments, it is easy to become a victim of payment fraud.
As the coronavirus pandemic disrupted our daily lives and business operations, credit card hackers and fraudsters take advantage of the panic and vulnerable businesses that have not yet adapted to the COVID-19 crisis in order to commit online payment fraud.
If you own a business in Florida or elsewhere in the U.S., your company should look out for red flags to avoid becoming a victim of payment fraud.
The Most Common Form of Online Payment Fraud During the COVID-19 Pandemic
A recent study by Sift found that more than half (51%) of all online payment fraud was performed via mobile devices. The study also found that online payment fraud increased by a staggering 73% in 2019.
In 2020, fraudsters are even more likely to access your website on their phones to purchase goods through identity theft by using stolen payment info or credentials. Also, fraudsters are less inclined to use credit card transactions to perform online payment fraud. Instead, they choose other payment options such as PayPal, Payoneer, Google Pay, Apple Pay, Samsung Pay, and others.
As most businesses heavily rely on online payments and e-Commerce during the coronavirus pandemic, fraudsters are even more likely to abuse these types of payment options.
E-Commerce Are Most Vulnerable Businesses During the Coronavirus Pandemic
The ever-growing popularity has coincided with a dramatic increase in online payment fraud in recent years. As millions of people have been quarantined, the risk of fraud on online platforms is higher than ever before.
Any e-Commerce business is at risk of becoming a victim of online payment fraud. However, companies that offer on-demand services, such as rideshare and food delivery businesses, are the most vulnerable.
Any business that makes online transactions should be alert to fraud during the coronavirus pandemic, regardless of whether you are selling digital items (gift cards, subscriptions, e-tickets, etc.) or tangible goods such as clothes, merchandise, electronics, and others.
Fraud-Related Risks for Businesses During the COVID-19 Outbreak
While both consumers and businesses can fall prey to online payment fraud, companies tend to suffer more damages. While consumers are often protected against fraudulent purchases, businesses are usually the ones who must cover the cost of those illicit transactions.
Now that businesses are forced to adapt to coronavirus shutdowns and must switch to e-Commerce and get used to digital interactions with their customers, fraudsters take advantage of their lack of experience and insufficiently strong security systems. That is why businesses across the U.S. must watch out for online payment fraud.
Many companies had to offer their employees to work from home, which puts businesses at risk for cyberattacks and online fraud. When working from home, employees could potentially compromise their company’s cybersecurity. After all, home security networks are not as robust and impenetrable as corporate networks. And cybercriminals are well aware of these vulnerabilities and weaknesses.
If your business has fallen prey to online payment fraud during the coronavirus pandemic, talk to our West Palm Beach business and consumer fraud attorneys at Pike & Lustig, LLP. Let us assist you in recovering compensation for damages caused by fraud. Call at 561-291-8298 to discuss your case.