Preventing Fraud in Tokopedia

Five common fraudulent activities that E-commerce should watch out for.

Before we get into common substance of some abusive actions at E-commerce sphere, we should realize that basically internet companies who run E-commerce has both advantages and vulnerabilities. Some advantages are they will simplify shopping method over traditional shopping (faster buying/selling procedure), dramatically change the way of business by creating new forms of business interactions and more reach to larger markets. One vulnerability that we should know is the more largest E-commerce becomes, the more supposable to attract fraudulent activities.

Based on Hossein Bidgoli statement in Handbook of Information Security, Threats, Vulnerabilities, Prevention, Detection, and Management: Volume 3. Every year, companies and customers lose billions of dollars from fraudulent activities, credit/debit card abuse and identity theft. Considering the fact that there are a lot of sensitive information going through E-commerce business it is very crucial that people behind the E-commerce should taking care of their data and user security issue that can result loss of thrust and business as well.

Phishing Attack

We can say that it is most usual current form of fraud, an attempt to acquire credentials information by masquerading as a reputable entity or person in email, IM or other communication channels in an electronic communication. Sometimes the intruder use psychological tricks to gain sensitive information to break security policy as know as social engineering technique. We should remember that our users may be targeted almost anywhere online, so always keep an eye out for those “phishy” schemes.

Credit Card Fraud

Credit card fraud existed long before the beginning of E-commerce era, credit card information have been stolen with nontechnical means such as bribing an employee or stealing records from skimmer devices. Nowadays, the credit card fraud at E-commerce is accomplished by recording the credit card number and other identifying information through internet so it can be used online or in some other way that does not require the card to be swiped at the point of sale or card not present schemes. Thanks to the development of secure cryptographic protocols for electronic payments such as secure socket layer (SSL), Visa 3D-Secure and MasterCard SPA. They provide valuable security layers to improve online authentication and reduce E-commerce chargebacks and fraud. Furthermore, we need to build and maintain a secure network, information security policy and regularly monitor and test networks to ensure safety. If you built an E-commerce in Indonesia, you must having concern about the cash advance abuse too.

Fake Transactions

Making fake purchase or giving reputation manipulation is known for a long time in E-commerce. We refer to such fraudulent activities as seller reputation-escalation (SRE) market abuse. It is not quite harmful to another user but it will disrupt the E-commerce ecosystem because the primary purpose of reputation system is to offer a means for users to give feedback on a product and its seller which in turn can attract more business. SRE abuse may have at least two deleterious effects for users. First, users who are fooled by the promotional reviews may make suboptimal choices. Second, the potential presence of biased reviews may lead users to mistrust reviews. In order to help us identify the presence of SRE abuse, we should create an algorithm to identify fake reviews.


The term of spam is quite common used in reference to send unsolicited inappropriate message in mass quantity. But in the term of E-commerce we will found the other terminology. Proliferation of fake accounts, this kind of abuse is sometimes painful for user experience because the abusers trying to posting irrelevant, unwanted, abusive, spammy, promotion comments or message.

Phone Scams

It is not quite frequent fraudulent activities but sometimes it occurs at well-known companies. Phone scams issue is about a fraudulent scheme performed by a cybercriminals communicates with the potential victim via the telephone in an attempt obtain money or confidential information from users. To avoid such case, we already encourage users to understand most common types of scams.

The abusive actions on the E-commerce has become such a persistent issue that we have almost come to accept is as a part of doing something in the new digital age. There are several keys to effective preventing fraud over E-commerce platform, but we should not forget that some of the most important tools in the corporate toolbox are thrust and strong internal controls.