Many businesses around the world continue to suffer because of credit card fraud and other online scams that are targeted at their ecommerce platforms and Internet tools. A significant part of the $8 billion losses reported in 2014 across the USA was due to businesses being victimized by card not present scams. Financial analysts and cyber security experts claim that by the end of 2018, these losses in 2014 can hit a whopping 125% growth rate, which translates to over $19 billion of losses because of credit card fraud and identity theft.
One of the main reasons behind this predicted growth of credit card fraud in the USA, as claimed by a lot of cyber security experts, is the increased focus of scammers and organized crime syndicates on unsuspecting users who access ecommerce platforms using their mobile devices. This brought about the widespread adoption of the mobile Web when it comes to online transactions and shopping activities. However, many users are still unfamiliar with the necessary security measures and precautionary strategies that they need to do when using their portable devices to browse the mobile Internet. This is currently being exploited by a lot of scammers and organized crime syndicates by distributing malicious applications designed to secretly log and covertly transmit the inputs of their intended victims in their mobile devices. Their main objective is to steal financial information from their intended victims and commit credit card fraud.
Once they end up with stolen details from their activities for carrying out credit card fraud, they need to think of ways to anonymously cash out these stolen cards. They must also ensure that they won’t be tracked, identified, exposed and persecuted when they do this. That’s where their latest scheme comes in for defrauding businesses with ecommerce shops and affiliate programs through affiliate scams.
How Do Fraudsters Commit Credit Card Fraud Through Affiliate Scams?
Scammers pose as legitimate businesses and Internet marketers looking for ways to earn significant income through the affiliate commissions offered by many businesses through their ecommerce stores. This is where a business or a solo Internet marketer can sign up as an affiliate of a business so as to promote their products and services. For each successful referral, they get a fixed percentage of the sale price as commissions. They just use a unique link, called an affiliate link, when promoting the products and services of the business that they’re affiliated with.
What they do is to use stolen credit cards to purchase the products and services of these businesses through their affiliate links. This is for those sales to be credited to them as the affiliates of the business. For carrying out this credit card fraud, they must find businesses with affiliate programs that offer quick commission payouts. Otherwise, they won’t be able to earn commissions because chargebacks and disputes filed by the legitimate owners of those stolen cards would most likely come first, thereby exposing their illegal activities.
If you operate an ecommerce shop and offer an affiliate program, then you should consider implementing stricter affiliate application requirements and a tighter review process to avoid this type of credit card fraud. You can also learn about the newest relevant tactics and schemes by signing up at BigScammers.Com – This online community allows other users, many of whom are other ecommerce store owners, to anonymously post scam complaints and file Web crime reports in the publicly accessible user-generated content repository of this website.