Fraudulent Activities in E-commerce Platforms on the Rise in Cambodia
As Cambodia’s digital landscape continues to grow, so does the threat of fraudulent activities in e-commerce platforms. According to recent data released by the telecommunications regulator, there are now over 19 million mobile phone users and 1.7 million internet users in the country.
Rise of Digital Payments
Visa’s 2021 Consumer Payment Attitudes Study revealed that 36% of Cambodian consumers do not use cash for payments, making it one of the highest percentages in Southeast Asia. Meanwhile, Cambodia also has the highest number of mobile banking users in the region, with four out of ten Cambodians using electronic wallets.
Booming E-commerce Industry
The country’s e-commerce industry is booming, with many online shopping platforms emerging, including Nham24, Little Fashion, and Joonaak Delivery. However, this growth has also provided opportunities for fraudsters to take advantage of unsuspecting consumers.
Residents Fall Prey to Fraudulent Merchants
Many Cambodians have fallen victim to fraudulent activities in e-commerce, with some even losing significant amounts of money. She, a resident of Kampong Tung Province, was defrauded out of her money when she tried to buy two e-bikes online. After making the payment, she never received the bikes and was even blocked from contacting the seller.
Yuth Somaly, another resident, has been defrauded three times after shopping online. “I trusted the sellers and didn’t check their credentials,” she said. “Now I’m more cautious when shopping online.”
E-commerce Companies Take Measures to Prevent Fraudulent Merchants
To prevent fraudulent merchants from entering e-commerce platforms, companies are taking multiple measures to strengthen security controls:
- Conducting a comprehensive audit and verification of merchants
- Conducting risk assessments
- Monitoring settled merchants
- Establishing an effective feedback and complaint mechanism
- Creating a multi-dimensional evaluation system
Dingxiang Defense Cloud business Security Intelligence Center suggested that e-commerce platforms should also use artificial intelligence and big data analytics to quickly identify fraudulent activities such as unusual transactions, false claims, and more.
Machine Learning and Rule-Oriented Risk Control System
The company has combined its Dingxiang Dinsight risk control engine with Xintell intelligent model platform to build a machine learning and rule-oriented risk control system. This system can:
- Accurately identify abnormal operations
- Conduct in-depth profiling of merchant accounts
- Carry out big data matching
- Detect malicious fraudulent accounts in real-time, block registration and login, and prevent fraudulent activities from occurring on e-commerce platforms
Experts’ Advice
Experts say that while these measures are effective in preventing fraudulent activities, consumers should remain vigilant when shopping online and report any suspicious activities to the authorities.
“The government is strengthening supervision and protection measures for online shopping to protect consumer rights and interests,” said an official. “Consumers should also be cautious and shop carefully to avoid falling victim to online scams.”
Conclusion
While Cambodia’s e-commerce industry continues to grow, so does the threat of fraudulent activities. It is essential that e-commerce companies take multiple measures to prevent fraudulent merchants from entering their platforms, and consumers remain vigilant when shopping online.