A small guide to preventing e-commerce fraud in North America: The protectors are actually consumers themselves

A small guide to preventing e-commerce fraud in North America: The protectors are actually consumers themselves

Over the past year, consumers have relied more on online shopping than ever before . The pandemic, coupled with the closure of physical stores , means that a much larger amount of shopping is being done online. More and more American consumers are willing to buy goods such as medicines from online channels, and there are signs that these trends will continue once the pandemic passes .

 

However, consumers’ increasing online shopping also exposes them to emerging risks posed by counterfeit products.

 

In 2020, online retail sales accounted for more than 21% of all retail sales, up more than 5% year-over-year, the largest annual growth rate ever. During the recent holiday season alone, American consumers spent more than $188 billion on shopping , up more than 32% from the 2019 holiday season.

 

It is likely to continue to rise in 2021 and beyond. Considering the prevalence of e-commerce fraud , it is important for consumers to remain vigilant in virtual shopping environments .

 

As social media platforms have become the hub of consumers’ social and shopping activities , the inability to avoid connections with others makes it easier for criminals to approach consumers . This relationship between fraudsters, consumers, and e-commerce platforms can be summarized as a stable criminal opportunity structure, which is described as the “crime triangle” .

 

It is understood that consumers have no influence on the presence of counterfeit and forged products on e-commerce platforms , but rather due to various platform loopholes, the proliferation of fraudsters and the rise of e-commerce have almost guaranteed the activity of criminals .

 

Recently, the U.S. Trade Representative released its annual Notorious Markets List, highlighting online marketplaces that continue to pose a threat to U.S. consumers and companies. The report clearly shows that certain e-commerce sites are doing more than others to address the problem of scammers on their platforms, while their peers are less engaged, creating safe havens for bad actors to sell illegal goods to consumers.

 

However, some consumers are willing to pay for counterfeit and shoddy products, but most consumers still do not want the products they buy to be of poor quality.

 

However, the presence of a small number of consumers who pay the bills means that consumers have a say in product counterfeiting schemes, and those consumers want to avoid becoming victims of counterfeit products and want to destabilize the online product counterfeiting criminal triangle. By adopting self-monitoring behaviors, consumers will play an active role in self-protection when online. This behavior is related to consumer choices and can reduce their exposure to criminals. Although the responsibility for guardianship is shared by consumers, e-commerce platforms and brands.

 

While there is no foolproof strategy to avoid e-commerce scams , following a few simple steps can help consumers reduce the likelihood of becoming a target.

 

First, when purchasing regulated products such as pharmaceuticals, consumers should make sure to verify the legitimacy of the pharmacy website by visiting the FDA's "secure" website. Second, when shopping on e-commerce sites, make sure to verify the actual seller of the product whenever possible , following links in product ads and links in customer reviews to understand the product's origin.

 

Additionally, pay attention to product reviews and any product images that may be posted. Finally, whenever possible, buy directly from the manufacturer through their legitimate website to minimize the risk of exposure to scammers .

 

Ultimately, consumers are the best protectors against counterfeit and fake goods.


North America

E-commerce fraud

consumer

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