Internet Merchant Accounts and E-commerce Fraud

Because users of Internet merchant accounts andconcerned with this type of fraud are also looking
customers do not have the opportunity tofor better ways to prevent money laundering
interact face-to-face, the kind of anonymitythrough operations that appear on the surface to
afforded by these all-electronic transactions canbe conducting a legitimate business, but are just
tend to encourage fraudulent activities. Althoughusing an Internet business to conceal the origin or
tools to detect and prevent e-commerce frauddestination of funds.
have improved over the years, there is little roomOn the consumer end of things, fraud perpetrated
for complacency as criminals are finding everthrough identity theft has been of such a focus
more sophisticated methods to evade detection.that legitimate transactions that appear on credit
And, sheer growth in the volume of e-commercecard statements, but are not easily identified by
transactions can complicate the process ofthe consumer are often reported as fraudulent.
weeding out possibly fraudulent interactions fromThis is still a major thorn in the side of Internet
perfectly legitimate ones.merchant account providers since there is still no
Fraud does not come just from the consumerstreamlined way of clearing up issues like this that
side, more sophisticated criminals will useare reported as fraud to credit card companies
merchant accounts in various ways to reapby consumers. In the world of virtual business,
ill-gotten gains. As seen in a recent case, Gucciproducts and services can be repackaged and
America was successful in shutting down anresold through a bewildering array of hand-offs, if
operation which sold counterfeit Guccia customer is not able to connect the charge as
merchandise over the Internet, and now they areit is printed on a statement to an identifiable
going after the companies that provided Internettransaction it is too easy to claim it as fraud.
merchant accounts to the fraudsters. Companies