Vulnerability of Online Retail | Ramblings of an e-trader

Saturday, 6 November 2010

Vulnerability of Online Retail

My sister, who manages the online store of her company, selling beauty products, told me that she dreads going to work now. The other day, she accidentally clicked on a link that came in an iTunes invoice and caused her computer to be infected with a malware that took technicians hours to arrest and isolate it. It was the second incident in two months!

Besides the continuous threat of viruses, malware, Trojans and whatnot, my sister said that online fraud is very rampant. There was once that she shipped an order out to Canada only to receive a charge back from the "real" owner of the credit card, claiming that she did not make the purchase. And of course, this is only one of the many cases that she shared with me. In this case, the company lost more than US$600.

As an online seller, I too have to be extra vigilant and try not to rejoice when I receive an order, especially from a new buyer. This could turn out to be a fraud attempt! LOL


Anonymous said...

You can't be afraid of every new order. The logical result of that trajectory is to shut down your own business!

Instead, you need to hook up with a service that investigates each new order in real time and marks it, from 0 to 100, on a wide variety of risk factos. This way, you can be sure when new orders are safe. You can be equally sure when a new order is totally out there fraudulent, and just ignore it. And then you can dial in the "middle ground" where a new order might be fraudulent or might not, and spend some time calling the customer or otherwise checking into the order to see whether or not it's a real one.

This kind of system that shields against fraud is the best way to fight back. Anything less is capitulation.

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