MouthShut.com CEO Mr Faisal Farooqui speaks about Preventing Online Frauds - Financial Express
1
Ashok Kumar W ITH MORE than 3,311hubsspread all over the coun- try, India is fast emerging as a leading e-commerce marketplace globally, says a recent report by eBay, a popular e-commerce hub. An earlier estimate by online re- tailer HomeShop18 pegged the industry at $9.3 billion. However, the industry is faced withthechallengeof ensuringcon- sumer confidence in keeping their identities and information secure. Some of the common e-commerce securitythreatsloominglargeover the industry include identity theft, data security breaches and phish- ing, which predominantly figure onthelistof consumercomplaints. As the biggest casualty of the emerging risk factors is the trust of the consumer in digital commerce, it becomes imperative for any busi- ness to take necessary steps to reduce customer concerns about shoppingandbankingonline. The users are advised to access their online accounts from their own computers and also ensure thattheyhavedifferentusernames and passwords for different ac- counts, as the probable attacker can use the same credentials to ac- cessanyaccount. But this is only the basic precau- tion. While most organisations be- lieve that simple usernames and passwords no longer provide ade- quate protection against sophisti- catedattacks,atthesametime,they feelhandicappedbecauseacompli- cated technical transaction process may hurt adoption and us- age. Intelligent authentication takes a risk-based approach that enables strong authentication that is both effective and unobtrusive fortheenduser. A few basic guidelines can go a long way in making the experience of online shopping a fruitful exer- cise. One of the most important de- cisions a customer is required to takeduringonlinetransactionisto choosethepaymentgateway. It is critical that the payment gateway you choose supports basic fraud detection and that all re- quired authentication measures are in place. Most frequently, credit card fraud is carried out by individ- uals, who have access to only credit card numbers and not the physical cards. “Two factor authentication checks via a one-time password are useful,”saysSuhasPrakashkumar, director, development, Symantec, a securitysolutionsfirm. If the site is not professional in appearance and operation, it may not be safe. The user should enter the payment information on a page that contains a padlock (se- cure lock) at the bottom of the page. Usually a shoddy looking, badly designed website should be avoided, cautions, Faisal Fa- rooqui, founder, Mouthshut.com, ausergeneratedcompany. Govind Rammurthy, managing director of eScan, a security solu- tion firm, feels securing the com- puter, clicking with care and knowingthemerchantarethethree most important steps one should followwhileshoppingonline. ‘Bad’ guys these days operate by planting a keylogger on your system that listens in, surrepti- tiously waiting for you to use your credit card or your bank password so that they can steal your money. So,evenif you’redealingwithale- gitimate merchant, you’re at risk if your computer is infected. “A major precaution is not to click on any links—even if the message looks legitimate—but to type in the merchant’s URL manually,” cautionsRamamurthy. According to Ajay Data, founder of Xgen Plus, advance email servers give special importance to emailsecurityandlayemphasison the awareness of consumers about the real price of the product. “The security of email is crucial. When you’re about to enter your credit card details, make sure you’re on a ‘secure’ site. The URL should have an https at the beginning (s for ‘se- curity’) and there should be a small gold lock in the lower right corner of thebrowser.” It is also significant for the con- sumer to understand the actual cost of the item, including ship- ping, handling, and sales tax as these factors can have an enor- mous impact on the final price. “Many merchants offer free ship- ping during holidays and those who have both online and physical stores will let you pick up the item from the store for free. In most states if you do business with a merchant who has a physical pres- ence there, he is required to collect state sales taxes. Although it’s tough to enforce, some states ex- pectyoutoself-reportallof youron- line purchases and pay sales taxes when you file your state income tax return,”Dataexplains. “Since online shopping is con- stantly evolving, in emerging mar- kets like India, shoppers need to be aware of different techniques used by merchants to use the web as an interactive platform to sell their products.Giventhefactthatalmost about 15% of credit card frauds are online, we must be cautious when sharing personal information like credit card details over the inter- net,” cautions Anand Dixit, execu- tivedirector,PwC. There have been cases where one typically notices situations of so called ‘baiting’ on different web- sites where a small number of prod- ucts are available at a discounted price. These are used as carrots to temptinnewshoppersandoftenfea- ture on the same page as full price merchandise. “In these cases, once we are drawn in to the websites, we are more likely to open our wallets forpurchases,”warnsDixit. Various new e-commerce plat- forms are mushrooming in India, but not every site pays adequate attention to user information se- curity, both financial and other- wise. Given that a lot of these are start-ups, there is an additional responsibility on the sites to in- still trust in the consumer’s mind, who are warming up to the e-com- merce platform. “There are enough measures in place like encryption and SSL certi- fication that every e-commerce site should embrace to provide a safe shoppingexperience.Else,afewbad experiences might actually create a mental block in the consumer’s mind about Indian e-commerce sites,” says Ranjith Boyanapalli, chief executive officer, Buythep- rice.com,ashoppingportal. Many online shopping services do not guarantee refund in case the goods are not delivered. “A proper system for addressing customer grievance like an exclusive cus- tomercarenumbercanbehelpful,” saysAjitChauhan,director,Syner- gy Promotions & Marketing ser- vices, SynergyCoupons.com, an e-commerceportal. Social shopping is the new thing but it has risks. One should not share too many details about per- sonal buying habits online and cer- tainly avoid pushing credit card details even to known people be- cause the information can be ac- cessed by others. One should always shop at online sites that have been around for years. “Avoid visiting just-launched sites so that you are confident of getting served well,” cautions K Vaitheeswaran, founder & CEO of Indiaplaza.com, ane-commercewebsite. Online consumers should al- ways choose a mode of payment that makes it easy for one to track all online transactions through a regular statement. Kunal Bahl, co- founder & CEO, Snapdeal.com, an e-commerce firm, warns against visiting sites that don’t offer an easyreturnandrefundpolicy. DhruvGupta,CEO,www.gkbop- tical.com,aleadingonlineeyewear stores, adds, “Payment gateways are getting more secure as banks are doing 3-d verification to ensure thatyourpaymentsaresafe.” The new challenge, in online shopping, lies in identifying the so-called alluring deals that offer huge discounts on products. Some of these deals offer products of in- ferior quality from suppliers, which lack credibility, creating confusionamongthepotentialcon- sumers about fake and genuine products. “Reputation and pedi- gree of an online shopping portal are critical for any shopper to have a happy buying experience,” says K Senthilnathan, head, straight- line.in,ane-retailplatform. To enhance online shopping se- curity, credit card companies are now establishing cardholder iden- tity authentication services, such as Verified by Visa, through the card issuers. It is getting safer to shop with a credit card as leading banks are adding extra layers of se- curity by OTP or pin verification. “Suchserviceswillletthecustomer use a personal password with their cards, giving them the security to shop online,” says Sundeep Malho- tra,CEOandfounderHomeShop18, ane-commercecompany. Customers should also acquaint themselves with the benefits of us- ingasecurepaymentgateway.This ensures safety and security of the transaction to the highest degree andisasmartoption.“Itisalwaysa good idea to get in touch with the customer support team before making a purchase for the first time from any website, as this call sensitises the user to the finer points and nuances of the transac- tion,” says Ishita Swarup, CEO & co-ounder, 99labels.com, an online shoppingplatform. Third party approval endorse- ments give credibility to websites whenitcomestosecurity-relatedas- pects of online shopping, says Ankur Warikoo, CEO, Crazeal.com, the Indian unit of Groupon, USA. “Downloadingthelatestversion of your web browser is an essential step consumers must take as these have built-in filters than can spot many fake websites,” says Mohit Anand, managing director, Indian sub-continent, Belkin India, a con- nectivitysolutionsfirm. It is also a good security practice to never discard readable electron- ic receipts or email confirmations for your online purchases, as this could leak valuable data for poten- tialmisuse. Arindam Bose, MD & chief cus- tomer officer, timtara.com, an e- commerce portal, says, “At the same time, we should not worry ex- cessively about the security aspect of shopping online. It prevents a customer from taking advantage of attractivedeals.” Inanycase,whetherit’sonlineor offline shopping, basics are the same. You must compare prices and gather as much information as pos- sible about the product, before- hand, religiously. The advantage with online shopping is that heaps arewrittenaboutproductsaspartof reviews and ratings. If you wish to dive deep, you can easily go through it in detail and also check user re- views in order to gain an in-depth knowledgeabouttheproduct. “Should you find yourself a vic- tim of fraudulent activities, do not find be embarrassed to act. Frauds do happen on an e-commerce plat- form and it’s advisable to make as much noise as possible,” says Sachin Singhal, head of e-com- merce, Naaptol.com, a compari- son-based social shopping portal. The Financial Express SPOTLIGHT November 6, 2011 4 online frauds IT IS CRITICAL THAT THE PAYMENT GATEWAY YOU CHOOSE SUPPORTS BASIC FRAUD DETECTION AND THAT ALL REQUIRED AUTHENTICATION MEASURES ARE IN PLACE THE NEW CHALLENGE, IN ONLINE SHOPPING, LIES IN IDENTIFYING THE SO-CALLED ALLURING DEALS THAT OFFER HUGE DISCOUNTS ON PRODUCTS. SOME OF THESE PRODUCTS ARE OF INFERIOR QUALITY, WHICH LACK CREDIBILITY As Indian e-commerce volume grows bigger by the day, so do security threats Preventing THE URL SHOULD HAVE AN HTTPS AT THE BEGINNING (S FOR ‘SECURITY’) AND THERE SHOULD BE A SMALL GOLD LOCK IN THE LOWER RIGHT CORNER OF THE BROWSER Ajay Data Owner, X-Gen Plus CARDHOLDER IDENTITY AUTHENTICATION SERVICES WILL ALLOW THE CUSTOMER TO USE A PASSWORD, GIVING HIM THE SECURITY TO SHOP ONLINE Sundeep Malhotra CEO, HomeShop18 THE USER SHOULD ENTER THE PAYMENT INFORMATION ON A PAGE THAT CONTAINS A PADLOCK AT THE BOTTOM. A BADLY DESIGNED WEBSITE SHOULD BE AVOIDED Faisal Farooqui Founder, Mouthshut.com WE SHOULD NOT WORRY EXCESSIVELY ABOUT THE SECURITY ASPECT OF SHOPPING ONLINE. IT PREVENTS ONE FROM TAKING ADVANTAGE OF ATTRACTIVE DEALS Arindam Bose MD, Timtara REPUTATION AND PEDIGREE OF AN ONLINE SHOPPING PORTAL ARE CRITICAL FOR ANY SHOPPER TO HAVE A HAPPY BUYING EXPERIENCE K Senthilnathan Head, straightline.in SHYAM KUMAR
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It is critical that the payment gateways you choose supports basic fraud detection and that all required authentication measures are in place
Transcript of MouthShut.com CEO Mr Faisal Farooqui speaks about Preventing Online Frauds - Financial Express
AshokKumar
WITH MORE than3,311hubsspreadall over the coun-try, India is fastemerging as a
leading e-commerce marketplaceglobally, says a recent report byeBay, a popular e-commerce hub.An earlier estimate by online re-tailer HomeShop18 pegged theindustryat$9.3billion.
However, the industry is facedwiththechallengeof ensuringcon-sumer confidence in keeping theiridentities and information secure.Some of the common e-commercesecuritythreatsloominglargeoverthe industry include identity theft,data security breaches and phish-ing, which predominantly figureonthelistof consumercomplaints.As the biggest casualty of theemergingriskfactorsisthetrustofthe consumer in digital commerce,itbecomesimperativeforanybusi-ness to take necessary steps toreduce customer concerns aboutshoppingandbankingonline.
The users are advised to accesstheir online accounts from theirown computers and also ensurethattheyhavedifferentusernamesand passwords for different ac-counts, as the probable attackercan use the same credentials to ac-cessanyaccount.
Butthis isonlythebasic precau-tion. While most organisations be-lieve that simple usernames andpasswords no longer provide ade-quate protection against sophisti-catedattacks,atthesametime,theyfeelhandicappedbecauseacompli-cated technical transactionprocess may hurt adoption and us-age. Intelligent authenticationtakes a risk-based approach thatenables strong authentication thatis both effective and unobtrusivefortheenduser.
A few basic guidelines can go along way in making the experienceof online shopping a fruitful exer-cise. One of the most important de-cisions a customer is required totakeduringonlinetransactionistochoosethepaymentgateway.
It is critical that the paymentgateway you choose supports basicfraud detection and that all re-quired authentication measuresare in place. Most frequently, creditcard fraud is carried out by individ-uals, who have access to only creditcard numbers and not the physicalcards. “Two factor authenticationchecks via a one-time password areuseful,”saysSuhasPrakashkumar,director, development, Symantec, asecuritysolutionsfirm.
If the site is not professional inappearance and operation, it maynot be safe. The user should enterthe payment information on apage that contains a padlock (se-
cure lock) at the bottom of thepage. Usually a shoddy looking,badly designed website should beavoided, cautions, Faisal Fa-rooqui, founder, Mouthshut.com,ausergeneratedcompany.
Govind Rammurthy, managingdirector of eScan, a security solu-tion firm, feels securing the com-puter, clicking with care andknowingthemerchantarethethreemost important steps one shouldfollowwhileshoppingonline.
‘Bad’ guys these days operateby planting a keylogger on yoursystem that listens in, surrepti-tiously waiting for you to use yourcredit card or your bank passwordso that they can steal your money.So,evenif you’redealingwithale-gitimate merchant, you’re at riskif your computer is infected. “Amajor precaution is not to click onany links—even if the messagelooks legitimate—but to type inthe merchant’s URL manually,”cautionsRamamurthy.
AccordingtoAjayData,founderof Xgen Plus, advance emailservers give special importance toemailsecurityandlayemphasisonthe awareness of consumers aboutthe real price of the product. “Thesecurity of email is crucial. Whenyou’re about to enter your creditcard details, make sure you’re on a‘secure’ site. The URL should have
an https at the beginning (s for ‘se-curity’)andthereshouldbeasmallgold lock in the lower right cornerof thebrowser.”
It is also significant for the con-sumer to understand the actualcost of the item, including ship-ping, handling, and sales tax asthese factors can have an enor-mous impact on the final price.“Many merchants offer free ship-ping during holidays and thosewho have both online and physicalstores will let you pick up the itemfrom the store for free. In moststates if you do business with amerchant who has a physical pres-ence there, he is required to collectstate sales taxes. Although it’stough to enforce, some states ex-pectyoutoself-reportallof youron-line purchases and pay sales taxeswhenyoufileyourstateincometaxreturn,”Dataexplains.
“Since online shopping is con-stantly evolving, in emerging mar-kets like India, shoppers need to beawareof differenttechniquesusedby merchants to use the web as aninteractive platform to sell theirproducts.Giventhefactthatalmostabout15%of creditcardfraudsareonline, we must be cautious whensharing personal information likecredit card details over the inter-net,” cautions Anand Dixit, execu-tivedirector,PwC.
Therehavebeencaseswhereonetypically notices situations of socalled ‘baiting’ on different web-siteswhereasmallnumberof prod-ucts are available at a discountedprice. These are used as carrots totemptinnewshoppersandoftenfea-ture on the same page as full pricemerchandise. “In these cases, oncewe are drawn in to the websites, weare more likely to open our wallets
forpurchases,”warnsDixit.Various new e-commerce plat-
forms are mushrooming in India,but not every site pays adequateattention to user information se-curity, both financial and other-wise. Given that a lot of these arestart-ups, there is an additionalresponsibility on the sites to in-still trust in the consumer’s mind,who are warming up to the e-com-merceplatform.
“There are enough measures inplacelikeencryptionandSSLcerti-fication that every e-commerce siteshould embrace to provide a safeshoppingexperience.Else,afewbadexperiencesmightactuallycreateamental block in the consumer’smind about Indian e-commercesites,” says Ranjith Boyanapalli,chief executive officer, Buythep-rice.com,ashoppingportal.
Many online shopping servicesdo not guarantee refund in case thegoods are not delivered. “A propersystem for addressing customergrievance like an exclusive cus-tomercarenumbercanbehelpful,”saysAjitChauhan,director,Syner-gy Promotions & Marketing ser-vices, SynergyCoupons.com, ane-commerceportal.
Social shopping is the new thingbut it has risks. One should notshare too many details about per-sonalbuyinghabitsonlineandcer-tainly avoid pushing credit carddetails even to known people be-cause the information can be ac-cessed by others. One shouldalways shop at online sites thathave been around for years. “Avoidvisiting just-launched sites so thatyou are confident of getting servedwell,” cautions K Vaitheeswaran,founder & CEO of Indiaplaza.com,ane-commercewebsite.
Online consumers should al-ways choose a mode of paymentthat makes it easy for one to trackall online transactions through aregular statement. Kunal Bahl, co-founder & CEO, Snapdeal.com, ane-commerce firm, warns againstvisiting sites that don’t offer aneasyreturnandrefundpolicy.
DhruvGupta,CEO,www.gkbop-tical.com,aleadingonlineeyewearstores, adds, “Payment gatewaysare getting more secure as banksare doing 3-d verification to ensurethatyourpaymentsaresafe.”
The new challenge, in onlineshopping, lies in identifying theso-called alluring deals that offerhuge discounts on products. Someof these deals offer products of in-ferior quality from suppliers,which lack credibility, creatingconfusionamongthepotentialcon-sumers about fake and genuineproducts. “Reputation and pedi-gree of an online shopping portalare critical for any shopper to havea happy buying experience,” saysK Senthilnathan, head, straight-line.in,ane-retailplatform.
To enhance online shopping se-curity, credit card companies arenow establishing cardholder iden-
tity authentication services, suchas Verified by Visa, through thecard issuers. It is getting safer toshop with a credit card as leadingbanksareaddingextralayersof se-curity by OTP or pin verification.“Suchserviceswillletthecustomeruse a personal password with theircards, giving them the security toshop online,” says Sundeep Malho-tra,CEOandfounderHomeShop18,ane-commercecompany.
Customersshouldalsoacquaintthemselves with the benefits of us-ingasecurepaymentgateway.Thisensures safety and security of thetransaction to the highest degreeandisasmartoption.“Itisalwaysagood idea to get in touch with thecustomer support team beforemaking a purchase for the firsttime from any website, as this callsensitises the user to the finerpoints and nuances of the transac-tion,” says Ishita Swarup, CEO &co-ounder, 99labels.com, an onlineshoppingplatform.
Third party approval endorse-ments give credibility to websiteswhenitcomestosecurity-relatedas-pects of online shopping, saysAnkurWarikoo,CEO,Crazeal.com,the Indian unit of Groupon, USA.
“Downloadingthelatestversionof yourwebbrowserisanessentialstep consumers must take as thesehave built-in filters than can spotmany fake websites,” says MohitAnand, managing director, Indiansub-continent, Belkin India, a con-nectivitysolutionsfirm.
It isalsoagoodsecuritypracticeto never discard readable electron-ic receipts or email confirmationsfor your online purchases, as thiscould leak valuable data for poten-tialmisuse.
Arindam Bose, MD & chief cus-tomer officer, timtara.com, an e-commerce portal, says, “At thesametime,weshouldnotworryex-cessively about the security aspectof shopping online. It prevents acustomerfromtakingadvantageofattractivedeals.”
Inanycase,whetherit’sonlineoroffline shopping, basics are thesame.Youmustcomparepricesandgather as much information as pos-sible about the product, before-hand, religiously. The advantagewith online shopping is that heapsarewrittenaboutproductsaspartofreviews and ratings. If you wish todivedeep,youcaneasilygothroughit in detail and also check user re-views in order to gain an in-depthknowledgeabouttheproduct.
“Should you find yourself a vic-tim of fraudulent activities, do notfind be embarrassed to act. Fraudsdo happen on an e-commerce plat-form and it’s advisable to make asmuch noise as possible,” saysSachin Singhal, head of e-com-merce, Naaptol.com, a compari-son-based social shopping portal.
The Financial Express
S P O T L I G H TNovember 6, 2011 4
online frauds
IT IS CRITICAL THAT THEPAYMENT GATEWAY YOUCHOOSE SUPPORTSBASIC FRAUD DETECTIONAND THAT ALL REQUIREDAUTHENTICATIONMEASURES ARE IN PLACE
THE NEW CHALLENGE, INONLINE SHOPPING, LIESIN IDENTIFYING THESO-CALLED ALLURINGDEALS THAT OFFERHUGE DISCOUNTS ONPRODUCTS. SOME OFTHESE PRODUCTS AREOF INFERIOR QUALITY,WHICH LACKCREDIBILITY
As Indian e-commerce volume grows bigger by the day, so do security threats
Preventing
THE URL SHOULDHAVE AN HTTPS
AT THE BEGINNING (S FOR‘SECURITY’) AND THERESHOULD BE A SMALLGOLD LOCK IN THELOWER RIGHT CORNER OFTHE BROWSER
Ajay DataOwner, X-Gen Plus
CARDHOLDERIDENTITY
AUTHENTICATIONSERVICES WILL ALLOWTHE CUSTOMER TO USE APASSWORD, GIVING HIMTHE SECURITY TO SHOPONLINE
Sundeep MalhotraCEO, HomeShop18
THE USER SHOULDENTER THE
PAYMENT INFORMATIONON A PAGE THATCONTAINS A PADLOCK ATTHE BOTTOM. A BADLYDESIGNED WEBSITESHOULD BE AVOIDED
Faisal FarooquiFounder, Mouthshut.com
WE SHOULD NOTWORRY
EXCESSIVELY ABOUT THESECURITY ASPECT OFSHOPPING ONLINE. ITPREVENTS ONE FROMTAKING ADVANTAGE OFATTRACTIVE DEALS
Arindam BoseMD, Timtara
REPUTATIONAND PEDIGREE
OF AN ONLINESHOPPING PORTALARE CRITICAL FOR ANYSHOPPER TO HAVE AHAPPY BUYINGEXPERIENCE
K SenthilnathanHead, straightline.in
SHYAM KUMAR
