Online fraud is growing rampantly without any end in sight.  While the Internet has become a lucrative channel for conducting business and selling goods and services, it also created a lucrative avenue for scammers and thieves.

Today, anyone can put up a professional website for very little costs.  A domain only costs $8, hosting can be free in some cases, and you can buy pre-made professional web templates that can rival the looks of the most established businesses.  Ecommerce functionality is likewise getting cheaper so anyone can set up a cheap way to extract money from unsuspecting web customers.

The technology and laws that have arisen to protect privacy on the Internet can be manipulated to protect revealing the identity of the scam artists.  Some of the most famous scams have extracted billions of dollars and the law enforcement agencies cannot trace the criminals.

The legal system has always been one of the slowest institutions in society to act to address new legal problems that arise due to an evolving society.  And, the law will never catch up.  Arguably, the minds behind criminal schemes are clever and even more innovative than the entrepreneurs with legimitate business models.

Technology will always outpace the law and even when the law does address a new problem, enforcement and real remedies are just not practical to a single person who has been defrauded.

We have gotten to a point where online commerce has become accepted and mainstream, but the concerns of online fraud are only now becoming a matter of significant concern to the average person.  Online fraud cases are showing up more and more in the news. The average business and consumer is becoming aware of the problems and the increasing chances that they could become a victim.

No longer will any security or trust certification seals work to alleviate the concerns. The public is becoming more savvy and understands that MOST (not all) of those certification programs are just another way someone is making a quick buck to sell a nice looking seal.

This issue will be elevated in the next few years and as a result- online buyers have started and will start to change their buying habits online based on these concerns.  They will want to only do business with companies that they KNOW are legitimate.

Even more, customers will come to realize that just because a website looks professional does not mean it is legimitate.  And, just because it posseses certifications or seals, does not mean it is a trustworthy business.  Customers will do more diligence seeking independent evidence of credibility.

This trend will make it more challenging for the new and small businesses to be successful and compete with the larger and more established businesses.  The best way to address this in your business is to focus on building your branding and establishing a presence in your industry.

Don’t look for shortcuts but think about what any real, legitimate company does over time to build their brand presence. Branding activity can be expensive but with new Internet based tools such as social media to help spread the word, a business can build a brand quickly with the right focus and approach.