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eBay and Amazon's security to avoid online frauds

Credit card fraud can be described as theft or fraud committed by using or involving a payment card, for example, a credit or debit card, as a fraudulent source in a transaction. The purpose could be to obtain goods/items without paying or to steal unauthorised funds from an account.

Credit card frauds cause tremendous financial losses. There has been a large volume and value increase in credit card transactions, which put customers as well as vendors in a situation where they are always at risk. Credit Card fraud begins with a stolen, physical card or with the theft of data associated with the customer’s account. It includes the card number or other information that would be available to a merchant during a legitimate transaction. The fraud can occur by many common ways and can usually be conducted without even a slight indication to the card holder, the merchant or the issuer, at least not until the account is finally used for fraud.

These frauds can be divided into categories depending on the way they are performed, namely:

  • Identity theft
  • Account takeover
  • Skimming
  • Checker
  • BIN attack
  • Phishing
  • Application fraud
  • Card not present transaction
  • Balance transfer checks

When it comes to credit card frauds, it’s the marketplaces that need to be alert first. They need to follow a certain set of rules to avoid such transaction and consequently protect the customers and vendors from such fraudulent transactions.

Filing Lawsuits:

Amazon and eBay filed many lawsuits against the identified Phishers and spoofers, Amazon asks its sellers for information regarding suspected or proven Phishers and spoofers.

Marketplaces provide instructions to the customers:

Various instructions are provided to sellers as well as the customers to avoid fraud, for example, there is a set of instructions issued from Amazon stating what they would NOT ask from their customers:

  • Their social security number or tax identification number
  • Their bank account information, credit card NO., PIN NO., or credit card CVV no.
  • Their mother's maiden name or other information to identify the customer
  • Their Amazon.com password
Fraudulent payments:

If it is believed that a buyer paid or is attempting to pay with fraudulent funds, eBay instructs the sellers to report it. They also ask them to contact local law enforcement where the buyer resides. Reporting a buyer who sent a check or money order that can't be cashed is also advised.

There is no end to the types and methods of frauds used by the credit card fraudsters. Hence using the right ways to counter them is the only answer, because with each passing day it gets more and more challenging. A proactive approach to dealing with frauds is highly recommended, either it’s a famous marketplace or a newly setup marketplace in both cases fraud management need to be dealt with caution and alertness. And this doesn’t only apply to the marketplaces but the customers, as well as the vendors, need to be careful and alerted.