66 million years ago, a 10 km radius asteroid called Chicxulub hit earth. A 180 km crater was created as the result but not only that, the impact of the hit was so devastating, it literally ended almost all lives on earth including the dinosaurs.
Now, 66 million years later, like the meteor, fraud is impacting the e-commerce world. Although it is not a 10 km radius asteroid, the impact is so significant that it may just trigger a similar event, the extinction of e-commerce world and it all started with a business.
Do not take fraud issues lightly
While some argue that the world is moving forward along with the online security and the e-commerce world are far from extinction, there is no assurance that’s convincing enough to ignore the potential threats. Sure, the security technologies are getting better and better, but so does the crooks.
What? Do you think they are just going to sit around and do nothing? No, they are also evolving, most of the times faster than the others, and learning along with the world and technologies.
Clearly, when they decide to make a move, the impacts are disastrous.
- External confidence
Business depends on customers to survive and thrive. To be more precise, without customers, there will be no business. In this case, if your business experienced fraud, your reputation will be at stake.
Ever since the introduction of commerce, customer experience are always a priority. However, fraud change that via customers’ perspective. From their view, if you allowed fraud to happen in your business, it just prove that you do not care about their experience.
This will not only affect their confidence but also their trust towards you. If you think that is the least of it, there is more. Your potential customer is also affected by this. They will not even bother to remember your company’s name let alone considering you. Simply put, your image will be tainted. As they say, losing one customer, and ten will follow. That is the norm of commerce world.
- Financial loss
Fraud usually involves money and when it comes to money, no one like to lose especially your customers. However, your customer will not feel the full consequences from that but instead, you and your business will.
Why? Because business is like a living thing and like any other living things, it need something to continue living, which is money and this money comes from your customer.
Fraud will not only stop the flow of money, but also your company growth and eventually you will have to shut down your business. Sure, it won’t happen in mere days but surely it will happen.
If you are lucky enough, you do not have to shut your business down but you may have to alter your financial plan and commonly, that will include the termination of your company staff. This later will force you to work with less work power and more time consumption.
- Affecting company morale
Well, let’s face it. If something as disastrous as fraud happened in any companies, morale is among things that surely affected.
A great working environment consist of great people with positive and great morale. However, fraud can change that completely. It can alter the positive vibes into negative, great environment to gloomy and not to mention the spirit of working, all went down the drain.
It gets worse because when the situation have reached that level, you will face the possibility of your staffs leaving you. Yes, they might leave you to seek other opportunities. A fresh new start to forget about the previous event, far from fraud and negativity.
You might take it easy if it were one person, but like customers, the other will follow and by that time, your business will have a hard time to get back on track.