Preventing E-Commerce Fraud Using IP Tracking

How to Prevent E-Commerce Fraud Using IP Tracking?

The concept of e-commerce is one of the biggest innovations of this era, providing people with an effortless and quick shopping experience as well as helping brands generate millions in revenue. According to a report by Fundera, it is estimated that 95% of the purchases will be online by 2040. 

However, e-commerce’s convenience and accessibility also bring the risk of fraud. These scams not only damage the reputation of brands in the industry but also contribute to the financial losses of the companies. Therefore, companies must identify potential risks in their e-commerce systems. By taking precautionary measures, they can provide a better shopping experience and ensure smooth operations.

So, today, in this blog, we will highlight the concept of frauds and scams in e-commerce systems and how companies, whether at the startup or enterprise level, can overcome this threat with IP tracking tools. 

What is E-Commerce Fraud?

E-commerce fraud refers to fraudulent activities, including theft, manipulation, misuse, and deception, that take place in online shopping businesses to gain financial benefits. 

Many industries are at risk of e-commerce fraud. From monthly subscription services to online wholesale retailers, every company that involves customer relations and digital transaction systems can be the target of this fraud. 

E-commerce businesses face various fraud risks. Fraud can be committed directly by the company or by third parties using fake financial details, stolen cards, or account takeovers.

These scams cause financial damage and erode customer trust. Fraudsters exploit vulnerabilities in e-commerce systems, such as weak data security or verification processes. 

Here are the most common types of e-commerce fraud: 

• Identity Theft: Scammers steal customers’ financial data and use their details to make purchases, causing loss to individuals. 
• Credit Card Fraud: Criminals obtain individuals’ credit card information, either from the company’s payment systems or from them personally, and make unauthorized transactions. 
• Account Takeovers: Fraudulent individuals gain access to a customer’s login and password credentials and use their account to make transactions. 
• Chargeback Frauds occurs when customers dispute legitimate purchases, refuse payment, and falsely claim they didn’t make the purchase or receive the goods.
• Account Creation Frauds involves creating multiple accounts with stolen payment information to exploit discounts or vouchers. 

What are IP Tracking Tools, and How Can They Prevent E-Commerce Fraud?

Every device needs an IP address (Internet Protocol address) to connect to the internet. This address allows devices to communicate with each other and send and receive data. 

An IP address acts like a unique ID, allowing your device to be recognized on the internet. You can simply go to Google to search or use some online tool to find out What’s my IP address?

IP tracking tools use the IP addresses of devices. When you visit a website, it automatically detects your IP address. This happens in real-time and requires no action from the user. 

IP tracking helps website owners understand their audience. It provides details like location, usage patterns, device type, and sometimes browsing history. 

E-commerce businesses use this data to improve customer experience, target them with specific ads, provide vouchers, or detect suspicious activities. For example, if a particular user repeatedly logs in from different countries, it could signal a scammer trying to carry out fraudulent activities. 

IP tracking tools help protect against fraud. By monitoring IP addresses, businesses can identify suspicious activity, take precautions, and address vulnerabilities. 

E-commerce companies handle sensitive customer data, so strong security is crucial. 

How to Use IP Tracking Tools to Find User IP Addresses? 

Tracking user IP addresses offers benefits for businesses of all sizes. IP trackers can enhance both customer experience and cybersecurity.

Here are five IP tracking tools that e-commerce businesses can use to prevent fraud and improve customer experience. 

1. OpenTracker

OpenTracker is a leading IP tracking tool. It provides detailed information about an IP address, including location, time zone, and geographic coordinates.

It also offers web analytics tools that can help businesses improve website performance and customer experience. 

2. NordVPN

Solarwinds is a comprehensive IP tracking solution for businesses. It provides real-time data and helps troubleshoot network issues related to IP addresses. 

With Solarwinds, you can monitor the past IP address, current IP address, MAC address changes, IP conflicts, and more data. 

Conclusion

E-commerce businesses are indeed at risk of scams and frauds because of the significant involvement of customer’s personal data and financial information. However, with the right strategies and practices, you can not only reduce the risk of these illegitimate and harmful activities but also improve customer experiences. 

In particular, integrating IP tracking tools can help companies detect suspicious activities, identify potential scammers, and find the vulnrabilities in their system. By practising this effective precautionary practice, organisations can deliver quick and smooth shopping experiences for their customers along with committing to their data safety.