Online Shoplifting


DEFINITION of Online Shoplifting

Online shoplifting is the theft of goods from an Internet merchant. Online shoplifting can seem harmless because the shoplifter never interacts with the victim and executes fraud with a few clicks and mouse clicks. However, it is a crime and online shoplifters can face serious legal problems, such as charges of postal fraud.

FAILURE Online Shoplifting

One way to shop online is to charge your credit card with a chargeback. A consumer purchases goods online using a credit card, receives the goods, and then submits a statement to the credit card company that they never received the goods. Consequently, the company issuing the credit card initiates a chargeback and obliges the merchant to reimburse the customer’s purchase.

Even if the customer never set foot in the merchant’s place of business, he actually shoplifted by fraudulently using the chargeback process to obtain goods without paying for them. Also, if a credit card payment processor receives too many chargeback requests for the same company, it can stop doing business with it. The online merchant then suffers secondary damage from online shoplifting because he can no longer accept a certain brand of credit card. This in turn could reduce sales, as the inability to accept this card will significantly annoy customers.

To be clear: chargebacks themselves are not fraudulent, but when consumers abuse this consumer protection tool, it triggers alarms with retailers and credit card issuers. In addition to lost merchandise, it usually costs around $ 40 to process a chargeback request.

Online shoplifting by hacking

Another way to shoplift online is through piracy. Illegal downloading of copyrighted music, books or movies for free instead of buying them through legitimate channels is a form of online shoplifting that simultaneously steals from producers and distributors.

The question posed a challenge for a number of reasons. Consumers of pirated content want it for free, or at least at a very low cost. Second, media companies often lack the resources to meet the growing demand for free content; the underground world of digital media is moving faster than big business, with conglomerates of smart hackers and hackers joining forces around the world. Third, the proliferation of user-generated content allows anyone and everyone to create and distribute content, and they may not even realize that they are violating copyright law along the way.

When it comes to finding a solution, there is no smoking gun or universal set of best practices to keep pirates away. Businesses will need to combine their asset protection strategies into multiple parts to minimize losses and ensure that feedback loops are in place.

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