The convenience that comes with shopping online is something that interests almost everyone. Each day, more people are jumping on the online shopping bandwagon, which is why experts predict that global ecommerce sales would hit $4.5 trillion by 2021.
However, with such growth comes unwanted attention, and one such attention that is causing so much damage to the online shopping industry is the issue of cyber scams.
According to scam statistics, internet theft, fraud, and exploitation were responsible for a massive $2.7 billion worth of financial loss in 2018. Experts say one in every ten adults will fall victim to online scams every year.
Despite the alarming nature of scams in the online shopping world, they suggest that constant improvement of retailer website security and a proper awareness of possible scam methods used on customers can help to reduce the level of fraudulent activities that occur when shopping online.
In this article, we will present different forms of scam that hackers use to steal personal information from online shoppers.
The Most Common Online Shopping Threats
Malware Attack
Malware is computer software designed with a specific purpose of causing damage or stealing data from a computer system. Malware attacks are the most common causes of data theft because malware comes in various forms and can infect a system in many ways.
Your computer can get infected with malware through connection with infected hardware devices, downloads, and interaction with infected websites. For example, malware like adware can be used to set up fake ads on malicious websites. When you click on such an ad, you provide hackers with access to your system where they can silently exploit all for your personal information for personal gains.
Most malware attacks are associated with identity scams. According to reports, identity fraud cost online retailers about $1.7 billion between 2016 and 2018.
Fake Online Stores
Fake online stores are used to lure users into submitting sensitive information such as DOB, credit card details, social security number, etc. Just like phishing, they can either imitate an existing online retail brand or set up a personal retail brand involved in the sale of counterfeit products or products that don’t even exist.
Two things could occur when you encounter a fake online store:
You are either redirected to a page where you input your credit card details after clicking on the ads, in which case your hacker can steal this information and do with it as they see fit.
You get redirected to a purchase page where you make payments for the product, only to be sent fake products or sometimes no product at all.
In some other cases, you will find that the hacker can steal your personal information, collect your payment, and you still won’t get your product.
Identity Theft
Identity theft is a serious concern, both for online shoppers and sellers. It involves the loss of sensitive customer data to hackers through malware attacks or data breach.
On the part of the customer, identity theft can occur due to malware attacks, as discussed earlier. But it is also important to point out that online retailers can also expose their customers to identity theft, especially when there is a successful hack on the retailer’s database through malware attack or exploitation of vulnerabilities.
In 2018, there were 130,928 reported cases of credit card fraud, and another 87,765 cases of other kinds of identity theft fraud, some of which include email and social media fraud, medical services fraud, insurance fraud, online shopping, payment fraud, etc.
Phishing Scam
Phishing involves creating a fake page that imitates that of a genuine online retail site to trick customers into providing their details. These details, when submitted, become a property of the hacker to use as they see fit.
Reports indicate that there about 1.5 million phishing sites being set up every month on the internet, with phishing victims often retargeted more than once by the same fraudster.
Fake Apps
With the growth of mobile commerce, many online retailers are now shifting their marketing efforts towards mobile apps, in a bid to convert mobile shoppers. At the moment, there is an app for almost any business on the internet, especially online retailers.
With the influx of so many apps into various stores, it is easier for customers to get lost in a sea of similar apps (fake versions) when trying to make a download. Fraudsters often create these counterfeit versions to steal customer details such as login credentials, bank statements, and personal information.
In case you think that fake apps are not much of a concern for online shoppers, it might interest you to know that Apple’s App Store is plagued with hundreds of them.
How to Avoid Online Shopping Scams
Use Anti-Malware Software
Anti-malware is a software program designed to protect your computer from various malware attacks. It does this by shielding your data and preventing you from accessing malicious websites.
Regularly Update Your Computer
Your browser, security software, and operating system can all be a source of attack by hackers. However, keeping up with regular updates of the parameters mentioned above will ensure that small weaknesses on previous updates that could be exploited by hackers are fixed.
Use Multi-Factor Authentication
Most online shopping platforms these days allow for two-factor authentication as an added layer of security for customer data. Where such an option exists, do make use of it.
Two-factor authentication involves generating a code that is sent to your mobile device. Anytime someone is trying to access your data on that particular platform, she would need to present the two-factor authentication code.
Use Strong Passwords
Strong passwords make it difficult for hackers to guess when exploiting weakness. Some tips for generating strong passwords include:
Opt for longer passwords (15 characters or more)
Combine numbers and special characters
Use a mix of uppercase and lowercase letters
Where possible, use a password generator.
Conclusion
As the number of online shoppers continues to increase, hackers continue to look for victims to exploit through various means.
From phishing attacks to fake online stores, identity theft, and counterfeit apps, these fraudsters possess an arsenal of techniques to defraud online shoppers of their hard-earned money and personal details.
However, paying attention to some necessary security details like creating strong passwords for all your logins, using two-factor authentication, and regularly updating your security software can go a long way to keep you protected.