10 Ways to Prevent Ecommerce Fraud on Your Website

Staying up-to-date on the latest fraud trends will help you be more proactive in identifying and preventing fraud on your website. No one wants to be the victim of fraud, but it can be hard to prevent. If you have an e-commerce website, it’s important to take extra precautions to make sure your customers’ information is safe.

No matter what type of business you run, ecommerce fraud is a risk. If you’re not careful, it can cost you thousands of dollars in lost revenue.

That’s why we’ve put together this list of 10 ways to prevent e-commerce fraud on your website. By taking these steps, you can help keep your business safe from fraudsters.

how to prevent ecommerce fraud

1. Keep Your Website Updated With the Latest Security Features

It is important to keep your website updated with the latest security features to prevent any type of e-commerce fraud. Some of the latest security features that you should consider implementing are two-factor authentication, CAPTCHA, and malware scanning.

Two-factor authentication (2FA) is an extra layer of security that is used to verify the identity of a user before allowing access to a website or online account. This can be done by requiring the user to enter a code that is sent to their mobile phone or email address.

CAPTCHA is a system that is designed to differentiate between humans and automated software. It does this by presenting the user with a test that is difficult for a computer to pass but easy for a human. For example, the user may be asked to identify a series of images that contain a common object.

Malware scanning is the process of scanning a website for malicious software that could be used to harm visitors or steal sensitive information. This can be done using a variety of free security tools, such as Sucuri Site Check or SiteLock security scanner.

2. Use a Secure Payment Gateway

When it comes to e-commerce fraud prevention, using a secure payment gateway is absolutely essential. A payment gateway is the software that allows you to accept credit cards and other electronic payments on your website.

A secure payment gateway is a must for any e-commerce website. A gateway encrypts customer information so it can’t be intercepted and misused by fraudsters. It also helps to verify the customer.

There are many secure payment gateway providers to choose from. Some of the most popular include Skrill, Stripe, and Authorize net. You’ll need to consider your needs and budget when choosing the right provider for your website. Once you’ve chosen a provider, you’ll need to set up an account and integrate it with your e-commerce platform. This can be a bit of a technical process, but with companies like PayPal and Payoneer, you can integrate payment systems easily without developer help.

Once your gateway is set up and running, you can start accepting payments on your website. Be sure to test it out with a few small transactions before going live. This will help you to spot any potential problems and to make sure everything is working as it should.

There are many different payment gateways available, and it’s important to choose one that is both reliable and secure. A good payment gateway will have features like fraud detection and prevention, data encryption, and chargeback protection.

3. Don’t Store Customer Credit Card Information

One of the most important steps you can take to prevent e-commerce fraud is to not store customer credit card information on your website. If you do not store this information, hackers will not be able to access it even if they manage to break into your system.

There are a few different ways to process credit card payments without storing the information on your website. The best way is to use a secure and reliable payment gateway such as Payoneer or Stripe. These companies will handle the transaction for you and will store the credit card information in a secure environment.

4. Keep Your eCommerce Software Up to date

One of the most important things you can do to prevent e-commerce fraud is to keep your software up to date. This includes your operating system, your web browser, any plugins, your content management system, and your shopping cart software.

Outdated software is one of the most common ways that hackers gain access to websites. They exploit vulnerabilities that have already been fixed in the latest versions of the software. By keeping your software up to date, you are closing these vulnerabilities and making it much harder for hackers to gain access to your website.

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If you are using a CMS like WordPress, you can set it to automatically update itself. If you are using a shopping cart or other software that is not updated automatically, you will need to do it manually. This can be a bit of a hassle, but it is worth it to keep your website safe.

5. Use a Premium Hosting Platform

A premium hosting platform will offer you the highest levels of security, which is crucial for preventing eCommerce fraud. When you host your website on a premium platform, you can be sure that your website is well-protected against the latest threats. Premium hosting platforms also offer you a wide range of security features, which you can use to further protect your website.

Some of the security features that you should look for in a premium hosting platform include:

Firewall Protection

A firewall protects your website from external threats by blocking malicious IP addresses.

DDoS Protection

DDoS protection is a method of protection against Distributed Denial of Service (DDoS) attacks, where a website is hit by a flood of traffic from multiple sources, making it impossible to serve legitimate traffic.

One way to prevent e-commerce fraud on your website is to invest in DDoS protection. This may be a built-in feature in your e-commerce software that can prevent hackers from taking your website offline. If not, it is important to install the DDoS protection plugin. A hacker’s goal is to steal personal information or money. All they need is your website’s login address. If they keep getting the login address, then they will easily be able to break security. To avoid fraud, it is very important to stop attacks on the site’s login page.

Not only on ecommerce websites but also on your blog, make sure you have the latest software that can protect you from DDoS attacks. The software, which is like a security guard for your online store, will block hackers from being able to access your website. Use a good website hosting provider and a good domain name registrar that has a good reputation and offers DDoS protection.

Malware Scanning and Removal

Malware can infect your website and steal sensitive information from your customers. A good hosting platform will offer you malware scanning and removal services to help keep your website clean.

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SSL Encryption

SSL encryption is essential for protecting the information that is transmitted between your website and your customers. A premium hosting platform will offer you SSL encryption to ensure that your customers’ information is safe.

6. Implement the Security Question Feature

One way to prevent e-commerce fraud is to implement a security question feature on your website. This will require customers to answer a question when they change their login information. The question can be something simple, like “What is your favorite color?” or “What is your mother’s maiden name?”

7. Educate Customers to Don’t Share Personal Information

Most people are now aware of the dangers of sharing personal information online, but many still do it without thinking. Make sure customers are able to find the information they need without difficulty. Your privacy policy is easy to find and understand. Customers should know how you will use their personal information before they provide it to you.

Remind your customers not to share their personal information with anyone. This includes your name, address, phone number, credit card number, and social security number. If anyone ever asks you to provide this information, always remember that companies never ask for your password, pin, or account numbers.

Educating your customers about these simple precautions can go a long way towards preventing e-commerce fraud.

8. Ask Customer to Set Strong Passwords

One way to prevent e-commerce fraud is to require customers to set strong passwords. This means that passwords should be at least eight characters long and contain a mix of uppercase and lowercase letters, numbers, and symbols. You can also require customers to change their passwords periodically.

9. Use Tracking Numbers for All Orders

If you’re selling products online, it’s important to use tracking numbers for all orders. This will allow you to keep an eye on your inventory and make sure that all orders are being shipped out in a timely manner. It will also help you resolve any customer service issues that may arise.

Using tracking numbers is a great way to protect your business from fraud. You should use a shipping service that offers a tracking system. If you see that an order has been placed but the tracking number shows that the package has not been shipped, you can cancel the order and refund the customer. This will also ensure that your customers can always track their orders. Make sure to monitor your tracking numbers on a regular basis.

10. Use a Fraud Monitoring Service

There are a number of fraud monitoring services available that can help you detect and prevent fraud on your website. These services typically work by monitoring your website for suspicious activity and then alerting you if they detect anything unusual. Some of the more popular fraud monitoring services include: FraudLabs Pro, Kount, NoFraud, and Riskified. These services all offer a free trial, so you can try them out before committing to a subscription.

Using a fraud monitoring service is a great way to protect your website from fraudsters, but it’s important to remember that no system is perfect. If you do suspect that someone has fraudulently accessed your website, be sure to take appropriate action immediately.


We hope you enjoyed our article about the 10 ways you can protect your website from e-commerce fraud. With so many e-commerce frauds happening, it’s more important than ever to learn about what you can do to prevent it from happening to you. Follow these tips and you will be able to safeguard your business against e-commerce fraud.

If you’re still unsure about how to keep your website secure, don’t hesitate to share your experience in the comments. Thank you for reading. We would love to hear from you!

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Author: Asif

Asif is a freelance writer who shares his knowledge and experience on how to build and run a successful online business. Whether you are a beginner or a pro, you will find valuable tips and resources on his blog » NewOfferSee Digital Time »

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