Traditional security infrastructure prioritizes system-level defenses — securing databases, locking down cloud servers and configuring firewalls. Modern scams bypass code by exploiting a different vulnerability: human behavior.

By going after users directly, scams have become more pervasive. Data from a Stop Scams Alliance and Gallup report shows that online fraud affects 24% of Americans and costs roughly $68 billion every year. That’s over four times higher than official federal tracking systems show in 2025, according to the same report. 

Beyond lost revenue, fraud inflicts severe emotional distress on its victims.

“Fear of being tricked again destroys customer trust. Many users stop buying things online entirely which impacts platform sales,” according to Surekha Nagpal, Senior Director, FinCrimes & Risk Operations, TaskUs.

Backend security is insufficient. Companies need to build protections into the brand experience and educate consumers on financial crime prevention.

What security information should merchants share 

To stop fraud, platforms need to clear up the confusion that scammers rely on. Bad actors succeed by perfectly imitating trusted brands, but clearly defining how a business operates makes it harder for them to deceive users. 

Product and trust teams can protect customers by focusing on three main areas.

Data from the Stop Scams Alliance and Gallup report lists where most scams start: online shopping platforms (17%), phone calls (15%), social media posts (12%) and text messages (10%).

“Scammers often start a conversation on your platform and try to move the user to a different app quickly to avoid safety filters,” Surekha explains. According to the report, 50% of successful scams use two or more communication methods to trap a user.

To protect customers, platforms should explicitly share a list of all official websites, emails, phone numbers and social media handles. At the same time, remind users that requests to move interactions from your secure native messaging environment to external apps (such as WhatsApp, Discord or Telegram) is a strong indicator of a scam.

2. Passwords and false urgency

The same study notes that 44% of victims voluntarily give up their passwords or personal details during an attack. This single mistake causes financial losses to jump, raising the median loss from $350 to $500 per incident. 

Surekha recommends that platforms constantly reinforce a strict “never ask” rule to prevent this. Remind customers that staff will never ask for a password, login code or full credit card number. Teach them how to spot high-pressure tactics. Scammers often create fake emergencies by claiming an account will be closed immediately. Amplify the message that official customer service teams will never use threats to verify identity.

3. Restricted payment methods

Scammers prefer fast, permanent payment methods because the money cannot be recovered. Payment apps or services are used in 42% of scams, followed by credit or debit cards at 31%, according to Stop Scams Alliance-Gallup. In the majority of cases, the victim never gets any of their money back.

Surekha says that to counter the threat, instruct users to complete transactions strictly inside the built-in checkout system. Clear warnings should state that if a seller asks for payment through outside peer-to-peer apps, gift cards, wire transfers or cryptocurrency, they are breaking safety rules and automatically lose their customer protection.

Designing UX safety features for every
stage of the user journey

While sharing this information is vital, dumping long pages of warnings on users during checkout hurts sales. Instead, fraud prevention strategies include “just-in-time” user experience (UX) — micro-interactions and dynamic safety alerts — based on specific customer actions.

1. In-app security alerts

People rarely read help articles and terms of service hidden in a website’s footer. It’s better to use quick alerts. For example, placing a small note next to a payment form that says, “Keep your money safe. Never pay outside this app,” catches the user right before they make a decision.

Companies working with multiple vendors can use badges to indicate that a seller has completed strict Know Your Business (KYB) checks.

2. Post-purchase safety

Scammers often use phishing texts after a real purchase, claiming users need to pay a shipping fee or fix an address. Platforms can stop this by clarifying their shipping process in the order confirmation email: “We only ship via [Carrier Name] and will never text you to ask for extra fees.”

3. Easy reporting portal

Most fraud goes unreported because users feel it won’t help or they don’t know where to turn. Platforms can bridge this gap by adding a simple, one-click “Report Suspicious Behavior” button directly on order history and profile pages.

Best practices for mapping retail
platform safety features

Lifecycle stage User activity Core function What to do
Discovery Account setup Identity verification Deploy compliance tools like 3DS2, device tracking and MFA to block fake accounts
Transaction Checkout In-App security notices Show real-time alerts (e.g., “Never pay outside this app”) right on the payment screen
Fulfillment Order review Post-purchase safety info Show clear examples of what official delivery tracking messages look like
Support Reporting fraud One-click reporting Provide a visible “Report Suspicious Behavior” option

Building long-term platform trust

“Digital security is a core part of the customer experience,” says Surekha, ”Proactively guiding users protects both user funds and platform reputation.” 

By delivering clear, actionable consumer guidance alongside integrated product safety deliverables, modern merchants can establish resilient, high-integrity marketplaces built to withstand digital fraud.