The Cross-Border Ecommerce Community (CBEC) enables Merchants, Payment Service Providers, ISOs and Acquiring Banks to access valuable content about mature and developing markets that can support strategic decision-making. Read more
More information can be found in the Cross-border Ecommerce Report- India
A huge market with rapid ecommerce growth, India nevertheless poses challenges for businesses looking to expand. There is evidence of consumer concerns about card fraud and the central bank is active in promoting measures designed to protect consumers from payment fraud. Merchants will need to demonstrate their active commitment to consumer protection while seeking to ensure that they enable sales to genuine customers.
According to Reserve Bank of India (RBI), with 350 million cards in use in 2012, payment fraud remained low, at USD 9.1 million. The most common types of reported fraud in India were skimming and online fraud.
More recent evidence suggests that India is a target for cybercrime. In 2013, an international report identified India as a top three target for cyber-attacks, accounting for 6.5% of targeted attacks during 2012.
The central bank has been active in efforts to prevent payment fraud, including the adoption of PCI DSS by June 2013 and a move towards a real-time fraud monitoring system. Most large banks reported their readiness for migration to the use of PIN for debit card transactions at the point of sale by June 2013.
To date, India does not appear to have suffered a great deal from CNP fraud. In October 2013, Sift Science placed India 22nd in a list of the 25 countries most subject to ecommerce fraud. One of the reasons for this may be India’s two-factor authentication mandates, requiring additional validation for online CNP transactions.
Online merchants looking to expand in this very large market need to focus on service excellence and knowledge of their customers. They need to be prepared for an increase in fraud over online and mobile channels and provide additional protection for channels where 3D Secure is not available. Indeed, where possible, the combination of 3D Secure authentication with other fraud prevention techniques, which can identify and enable genuine transactions that have failed 3D Secure authentication, can offer a powerful and effective weapon against fraudsters.
More information about ecommerce fraud, mobile fraud and online fraud prevention in India can be found in the Cross-border Ecommerce Report - India
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