Over the last decade, the e-commerce business has skyrocketed to become an industry surpassing sales figure of $2 trillion in 2017. Experts predict that with technological improvement and online payment becoming seamless, by the year 2021 the industry would go up to $4.5 trillion.
Where on one hand the increasing demand and business is good news for merchants but at the same time, the increasing number of frauds is causing bigger challenges. Reports show that e- commerce online frauds are on a continuous rise. The year 2016 recorded a 33% rise in e- commerce fraud compared to the year 2015. Therefore, online fraud protection has become one of the topmost priorities of online businesses.
Email verification tool is playing a major role in helping online businesses in avoiding frauds. Such verification and validation tool like Clearout has made instant validation possible. Validation of customer email ids on spot not only helps you build quality customer list but also helps you in avoiding fraudulent addresses corrupting your data. Here is how an email validation tool helps in fraud prevention:
1. Real-Time Validation
The API facility enables you to conduct a real-time email validation. The API integration is very easy and does not take additional cost. The direct integration with application or website enables auto verification each time a new email id is submitted.
2. Identifies Real Email IDs
Clearout identifies the valid email addresses from the invalid and junk addresses. The tool helps you to segregate email ids that do not belong to real people. That could either indicate them to be spam traps or fraudulent email ids. In both cases, it is better to avoid keeping such email ids in your records. The real-time validation improvises the data collection. As soon as the customer feeds in the email id, the system can notify if the id is valid or invalid. The typo error or invalid address can immediately be brought into notice and you can request the customer to fix the detail in order to register.
3. Risk Measurement
Verification process also flags the emails with risk percentage indicated by Delivery score. This metric indicates it is safe to send email to a given address. A risk domain is the one where the domain is blacklisted by multiple ESPs (Email Service Providers) for fraudulent activities.
Real-time email validation has not only made online transactions much safer but has made email marketing even more effective resulting in more sales/conversions. The instant validation process helps in building a high-quality database. This makes the email reach out more impactful. At the same time, the sender reputation also improves as the filtration process eliminates the number of spam and bounces.
The risk of frauds are high but they can be avoided by putting tools like Clearout in place. Such tools implementation ensures your business safety, as well as your customer's, are also not exposed to any risks. Apart from this, ensure to keep a check on the online transaction and any suspicious transaction should be notified for detailed inquiry.
With the advancement of technology, the importance of data is on the rise. Smart data can provide you with powerful insights to grow your business and improvise on your services. An email verification tool can help you protect your data and maintain data hygiene. A minor addition in the data collection system like a Real-time verification tool can mitigate the risk of fraud.
