Swiss Cheese Multi-Layer Defense Model for E-commerce Fraud Prevention
International Research Journal of Modernization in Engineering Technology and Science · 2025
The rise of sophisticated professional criminals and underground networks has made fraud detection increasingly complex, requiring advanced strategies to understand, track, and prevent malicious activities.In the retail sector, especially eCommerce, chargebacks caused by fraud, address manipulation, and account takeovers pose significant challenges.The U.S. retail eCommerce industry typically faces chargeback rates ranging from 25 to 50 basis points (0.25%-0.5% of total merchandise sales).This paper proposes a comprehensive, multi-layered security and fraud management framework, inspired by the Swiss cheese model, to detect and mitigate threats throughout the customer journey.By implementing these measures, eCommerce platforms can significantly reduce chargeback rates, achieve industry-leading performance and improve overall operational resilience.