As technology continues to evolve, it’s no secret that the rise of online retail spaces offers significant opportunities for the retail industry, creating better shopping convenience for most consumers around the globe.
This evolution however also opened the doors to new adversities, which led businesses to be more exposed to risks such as data breaches, fraudulent activities, and market disruptions that demand strategic countermeasures.
Building on this perspective, the latest exclusive interview of UpTech Media with Stanley Hsu, regional vice president for Asia at Mimecast, tackles this particular area of concern to usher in the need for businesses to provide customers with a sense of security when browsing their platforms.
More specifically, Hsu outlines some strategies that the Singapore government has employed, allowing enterprises to gain better insights on safeguarding themselves from the emerging threats in the e-commerce space.
Understanding the nation’s response and the system at play
In Singapore, a rise in the number of reported cases was recorded in 2023, with a total more than doubled from 2022 at 9,783 cases. These figures highlight the increasing prevalence of scams attempting to infiltrate the industry and targeting a growing number of consumers.
According to Hsu, these ongoing concerns in the country’s e-commerce system urged the Singapore government to implement substantial measures to combat these threats.
Through the nation’s new codes of practice under the Online Criminal Harms Act (OCHA), social media platforms and online marketplaces are now required to authenticate the identities of risky sellers and advertisers.
These measures, as he noted, will guarantee the legitimacy of those consumers or businesses transact with, especially “ensuring that only legitimate sellers and advertisers can operate on these platforms. Thereby reducing the risk of scams and protecting consumers from fraudulent activities.”
For him, “the strategies implemented under OCHA are designed to enhance security without compromising user experience.
“By focusing on the verification of risky sellers and advertisers, the government aims to create a safer online environment while allowing genuine users to continue their activities with minimal disruption,” elaborated Hsu.
“The verification process is intended to be seamless and efficient, ensuring that it does not become a barrier to legitimate transactions and interactions.”
Successful implementation can also enhance consumer trust in online marketplaces, resulting in increased user engagement and transactions. Platforms that effectively implement these measures can differentiate themselves as safer and more reliable, attracting more users and businesses,” he added.
Meanwhile, when asked about the limitations of the new codes, Hsu asserted, “Implementing and maintaining robust verification processes can be resource-intensive for e-commerce platforms, especially smaller ones.”
In his opinion, adding extra verification steps could hinder user experience, “potentially leading to a decline in user engagement,” he said.
Beyond said measures, Hsu further brought up the anti-scam messaging facilitated by the country’s police force, which reads as ACT, short for (1) Adding scam shields and security features; (2) checking for scam signs with official sources; and (3) telling authorities, family, and friends about scam encounters and fraudulent transactions.
Navigating the danger zones in the e-commerce scene
In the discussion, Hsu explained that falling victim to marketplace scams enables Singaporean consumers to adopt a more cautious and skeptical approach towards online transactions.
“This skepticism can lead to reduced online shopping activity, thus affecting the revenue and growth of e-commerce businesses,” said Hsu. As businesses address scam-related issues, he further shared that said approach leads to increased costs, enabling them to increase expenditure in fraud prevention and customer service.
However, confronting this challenge at hand requires a thorough understanding of the prevalent threats and tactics employed by these scammers.
“For businesses, it is crucial to educate customers about common scams and safety measures so they can protect themselves when transacting on their platform,” he said.
Hsu then continued citing the most common scams in the e-commerce landscape, where he pointed out, “fraudulent sellers often list products at an attractive price, collect payments or deposits from interested customers, and then disappear without delivering the goods.”
Scammers also use malicious QR codes or links that lead victims to a phishing site where customers’ personal information and banking details are stolen.
“These QR codes hide the true destination of a link and scam victims to scan and visit the phishing site that may look legitimate at first glance,” he noted.
Adding to his insights, Hsu emphasised the need for businesses to implement extra identity verification protocols to make it more difficult for fraudulent sellers to conceal their identities.
This stems from the fact that scammers take advantage of consumers’ trust and their desire for good deals, specifically by imitating legitimate businesses.
“Scammers often mimic legitimate businesses to gain credibility and deceive both consumers and businesses into believing they are engaging with a trustworthy entity,” he further shared.
Wrapping up the discussion, Hsu advised consumers to verify the authenticity and identity of sellers first before making a purchase.
He also underscored the importance of caution, highlighting unsolicited links or QR codes as potential threats and avoiding clicking them.
Additionally, he recommended using secure payment methods that are offered only by the e-commerce platform.
“When secure payment options are not available, consumers should transact in person to verify receipt and quality of items before making payment,” concluded Hsu.
