The peak shopping season is one of the favorite times of the year for fraudsters. While we discovered that many large fraud organizations started in China, it has also severely affected the global e-commerce merchants. In this article, we revealed fraud tactics like never before and deep dive into the leading risk management in the digital landscape.
November 20, 2023
Wang Ying & Shuant Goh
The digital commerce is thriving. So does digital fraud.
As the end of the year approaches, digital commerce platforms and merchants are ramping up their preparations for the peak shopping seasons.
From Singles Day (11.11) to Black Friday, Cyber Monday, and Christmas Sales, merchants stock abundant goods and deploy diverse promotional strategies to captivate global consumers' hearts.
The array of tactics is vast and varied, from cash incentives for new users to friend-referral discounts and point-based reward systems.
However, with these aggressive marketing strategies come significant vulnerabilities.
The landscape of seasonal promotions becomes a playground beyond legitimate sales and an arena where fraudulent activities, fueled by increasingly sophisticated tactics, run rampant.
This article delves into the nuances of the challenges posed by fraudulent activities during peak seasons.
We will also explore innovative solutions to safeguard the integrity of your e-commerce platforms.
As the digital marketplace continues to flourish, so does the sophistication of electronic fraud.
Malicious fraudsters exploit promotional incentives for personal gain.
From concocting fake reviews to orchestrating coupon heists, these deceptive practices jeopardize the trust and financial stability of e-commerce entities globally.
The repercussions of internet fraud extend beyond immediate financial losses.
As a digital commerce owner, the impact on your business may include:
Fraudsters employ a sophisticated arsenal of tactics, including false registrations, fake reviews, and the creation of multiple accounts to exploit promotional offers.
Their manipulation extends to using cheat software, altering device parameters, and orchestrating large-scale fraud through device farms.
Understanding these tactics is crucial for e-commerce entities to fortify their defenses.
Illicit businesses initiate their operations by inundating platforms with a plethora of false information during bogus registration.
This crucial step facilitates their entry into the digital ecosystem.
These rogue entities often register a batch of numbers or emails, engaging in seemingly ordinary transactions to outsmart platform risk monitoring strategies.
Subsequently, they create multiple fake or anonymous accounts to exploit promotional offers, claim discount coupons, and receive cashback repeatedly.
Fraudsters employ various cheating tools and software to outmaneuver platform monitoring and enhance operational efficiency.
A prevalent method involves using technical means, such as executing automated scripts or employing tools like Macros to mimic manual operations, facilitating automatic coupon collection.
Initial processes include automated registration or number scanning through code-receiving and captcha platforms, enabling the acquisition of a batch of usable accounts with saved login information.
This is then leveraged for automated mass logins and subsequent automatic coupon collection.
Besides that, digital fraudsters also exploit device modification and device info tampering tools, installing software to alter crucial device parameters like IMEI, IMSI, SIM card serial numbers, GPS location, and phone model.
By manipulating these parameters, fraudsters can create many new devices, enabling the continuous claiming of coupons meant for new users.
Device farms, or group control systems, are common tools for illicit operators.
These systems remotely control many mobile devices for coupon collection through technical means.
Using the Android system, for example, the Device Group Control System is deployed on a server, connecting all controlled devices to the server via USB or network. The server then translates relevant operations into corresponding ADB (Android Debug Bridge) commands, which are subsequently sent to the controlled devices for execution.
Scammers often resort to crowdsourcing by posting tasks in forums or social media groups, enticing the public to assist in their fraudulent activities.
Following the crowdsourcing operation, ill-gotten gains are centrally delivered to an address provided by the scammers.
Upon receipt, these fraudulent gains are converted into cash.
Addresses provided often include codes or phone numbers, facilitating collusion with couriers for door-to-door delivery.
The operations orchestrated by the fraud industry aim to secure gains from digital commerces marketing activities.
It may seem like a small sum. However, the incremental accumulation of small profits often results in substantial gains.
While even well-established digital commerce platforms grapple with the complexities of sophisticated electronic fraud, the challenge is magnified for small to mid-range counterparts and merchants.
As a prominent international risk management company, TrustDecision utilizes cutting-edge proprietary device fingerprint technology to combat internet fraud.
This sophisticated technology allows us to continually monitor and inspect various tools prevalent in digital commerce fraud.
TrustDecision actively identifies and analyzes malicious software or cheating tools in the market, revealing the intricate methodologies employed by fraudsters.
Among the detected tools is the multi-accounting tool, a potent instrument enabling the opening of multiple accounts on a single phone, thereby facilitating fraudulent operations.
TrustDecision's data reveals that 10% of transactions identified as fraudulent exhibit abnormal behavior in their terminal devices.
Leveraging a vast database of several billion compliant devices worldwide, TrustDecision has established an all-encompassing global repository of malicious tool samples.
As a leader in security and risk management services, we prioritize continuous monitoring of both domestic and international fraud tools.
With each discovery of a new tool, TrustDecision proactively combats it, ensuring the ongoing security of our clients' businesses.
TrustDecision integrates an intelligent analysis platform fortified with multi-modal AI and machine learning technologies.
This platform is pivotal in real-time risk monitoring and near-real-time fraud ring detection across various customer interactions, including registration, login, transactions, payments, and other critical touchpoints, ensuring comprehensive security measures throughout the customer journey.
Benefits for Clients
We are your stalwart ally, safeguarding your business in the dynamic and ever-evolving digital landscape.
As you gear up for the upcoming shopping extravaganzas, remember to recognize the silent guardians working tirelessly to secure the prosperity of your business amidst the looming threat of digital fraud.
By understanding the complex web of fraudulent activities and embracing innovative solutions, you can turn the tide against the dark underbelly of digital commerce, ensuring a secure and thriving marketplace.