FRAUD attacks threaten
the e-commerce sector in the
Philippines amid the pandemic—but a digital expert
warned these do more harm
than just revenue losses.
The recent surge in
and spending has prompted
an “aggressive increase” in
cyber attacks globally, Vesta
Asia Pacific General Manager Shabab Muhaddes told
the Business Mirror.
Vesta, a global fraud
detection company, noted that payment fraud attempts in the Southeast Asian
region are 12 times more than the global average. This has resulted in online
merchants losing an average of 1.6 percent in their revenues annually.
“While direct fraud
loss—the amount that was fraudulently used for the purchase—makes up a
significant component of the total cost of fraud, it’s also the catalyst for
loss in other operational areas of their business,” Muhaddes stressed.
The Vesta official is
referring to consumer trust and brand reputation, which can take a hit because
of the fraud attacks. The consumers, he said, may see the online payment
options as not secured because of the cyber threat.
“Not only will
consumers refuse to interact with the SMEs [small and medium enterprises] and
online retailers in the future, they are also likely to tell others about their
experience. This can quickly result in a significant amount of lost revenue,”
(CNP) scam is among the common types of payment fraud the SMEs and online
retailers have to deal with, Muhaddes said.
This refers to
illegal purchases on e-commerce platforms using stolen payment information, he
explained. CNP fraud, as suggested by the term, may take place even without
Another payment fraud
cited by the Vesta official is account takeover, which is a form of identity
“A successful account
takeover attack leads to fraudulent transactions and unauthorized shopping from
the victim’s compromised account,” he said, noting that a fraudster, in this
case, illegally obtains access to bank, e-commerce site or mobile wallet
To better handle cyber security, Muhaddes said the
companies need to “work with technology partners that can calibrate in
real-time between good and bad transactions, drawing on trillions of data
points, leveraging behavioral, device, and fraud link analysis to improve
performance,” he explained. Business Mirror