E-Commerce And Its Frauds

We all are not using our traditional methods and are shifting towards new methods such as online- shopping, digital marketing etc. we are relying on modern technology for our daily needs such as buying clothes, stationery items, etc. before buying and selling all these products we need to understand the pros and consequences of using technology in order to protect ourselves from crimes such as frauds etc. Firstly we will talk about e-commerce, E-commerce refers to the commercial transaction conducted online. This means that whenever you buy and sell something using the internet, you’re involved in E-commerce.

In European Initiative in Electronic Commerce E- Commerce is defined as “Any form of business transaction in which the parties interact electronically rather than by physical exchanges. It covers mainly two types of activity:- it is the electronic ordering of tangible goods, delivered physically using traditional channels such as postal services or commercial couriers.” Whereas Fraud is defined under Section 17 in The Indian Contract Act, 1872. It means any act committed by a party to the contract, or with his consent, by his agent, with the intention to deceive another party or to induce him into a contract. The suggestion of fact, which is not true. It includes Active concealment of fact, Promise made without the intention of performing it, Any other act fitted to deceive, Any such act which law specially declares to be fraudulent. There are many E-Commerce Frauds which we all need to understand before performing any E-Commerce Activity on the Internet. These frauds can be classified as:-

 Credit card fraud:-Fraudsters often make online purchases using stolen credit cards details. Sometimes they may be in physical possession of the card, other times they could have gained all the information electronically. The moment payment is approved business is responsible for ensuring the authenticity of the customer. Card owner may seek reimbursement from the company. Credit card skimming is a type of credit card theft where crooks use a small device to steal credit card. When a credit or debit card is swiped through a skimmer, the device captures and stores all the details stored in the card's magnetic stripe.

 Refund fraud:– It is most common in online purchase. A person falsely claims that he has not received the goods and asks the company for a refund.

 Merchant fraud:– The fraudster sells and receives the payment for non-existent items. Even in this case, it is the business who is responsible for the reimbursement. A merchant/seller sets up a fake website with goods to order. The company’s address, contact number, policies for cancellation, return and refunds, and a payment gateway for making transactions are all fake.

 Identity theft:- It is one of the most common types of fraud. In this case, fraudster carries out an online purchase using a different identity. This enables the fraudster to order items online under a false name and using someone else’s credit card.

 Phishing:– In this case, an email asks for user ID, passwords, credit card details and other personal information. The sender seems to be a credit institution that needs confirmation of some information due to a change in the system. Phishing allows criminals to get access to bank or other accounts and it can be used for identity theft. We need to protect ourselves from all these frauds. For safe and secure E-commerce Activities we need to take certain measures which are mentioned below:-

• Install an Anti-Phishing Toolbar.
• Verify a Site’s Security –  make sure the site’s URL begins with “https” and there
  should be a closed lock icon near the address bar.
• Use Firewalls.
• Use Antivirus Software.
• Never Give Out Personal Information –  When in doubt, go visit the main website of
  the company in question, get their number and give them a call.
• An Internet user should never make confidential entries through the links provided in
  the emails.
• Do not trust all shopping websites. Check for customer feedback, reviews and the
  website’s social media page before buying from there.
• Only buy from trusted shopping websites and platforms.
  Report the fraudulent website to Google.

Article By- Divya Samriti

Editing By- Jasleen Kaur