Security stands as the cornerstone of successful cross-border e-commerce, safeguarding both businesses and consumers from evolving threats. In a borderless digital landscape, robust security measures foster trust, protect sensitive data, and ensure seamless transactions.

Encouraging Developments Arise in Fraud Prevention

Amid challenges, positive news emerges in fraud prevention, particularly for domestic orders. The global landscape witnessed significant drops in the percentage of revenue lost to fraud, domestic order rejections, fraud rates, and fraud-related chargebacks. North America displayed remarkable progress, intensifying fraud management spending.

Globally, businesses continue to allocate around 10% of annual e-commerce revenue to combat payment fraud. Notably, the percentage of merchants not tracking this metric reduced from 30% in 2021 to 23% in 2023, indicating heightened vigilance. Geographically, North America and Europe's spending on payment fraud remains steady, while APAC and Latin America surged from 6% in 2022 to 8% in 2023 respectively. Noteworthy is the doubled investment by SMBs ($50K to $5M annual sales) in fraud management – from 6% to 12% of e-commerce revenue.

Possible Instances of Financial Fraud in International Transactions

The above data proves the importance that companies attach to security. So, what specific situations might they encounter? Now let's delve into some potential financial fraud cases that might arise in the realm of international transactions, particularly in cross-border e-commerce:

Card Not Present (CNP) Fraud

Fraudsters exploit the lack of physical presence in online transactions. Stolen credit card information or compromised account details can lead to unauthorized purchases, affecting both consumers and merchants.

Shipping Address Manipulation

Fraudsters may alter shipping addresses during the checkout process, diverting goods to a different location. This can result in lost merchandise and financial losses for e-commerce businesses.

False Chargebacks

Criminals exploit the chargeback process, claiming they didn't receive products or services when they actually did. This 'friendly fraud' can lead to revenue loss for legitimate businesses.

Account Takeover (ATO)

Hackers gain unauthorized access to customer accounts, altering payment information and making fraudulent purchases. Multi-factor authentication is crucial in mitigating this risk.

Fake Online Marketplaces

Fraudsters create counterfeit e-commerce platforms, enticing users with attractive deals. Unsuspecting customers make payments, but the goods never arrive, leaving them scammed.

LianLian Global - Your cross-border growth partner™

Now we know that when it comes to cross-border payments, security is paramount. At LianLian Global, we take pride in providing a rock-solid foundation for safe financial transactions.

✅ Always licensed

We are licensed in all the regions we operate in, with 60+ payment licenses and certifications worldwide.

✅ PCI compliance

We maintain world-class security and financial compliance and meet all PCI-DSS requirements to help prevent unauthorized transactions, fraudulent payments, and identity theft.

✅ Privacy Protection

We encrypt all information and never disclose your data to third parties without permission.

The fight against financial fraud in cross-border e-commerce is an ongoing journey, driven by collaboration, data-driven insights, and strategic investments. Let LianLian Global be your cross-border growth partner and continue building a more secure and thriving e-commerce landscape!

Reference

https://www.cybersource.com/content/dam/documents/campaign/fraud-report/global-fraud-report-2023-en.pdf