The pains of e-commerce consumers are growing daily just as brand reputation of e-commerce sites are dwindling. With losses by users, e-commerce platforms have continued to up the ante to protect consumers, writes ADEDEJI ADEMIGBUJI.
The growing e-commerce industry in Nigeria has led to an increase in online transactions in the country, despite that the trend has been inundated with reported cases of fraudulent activities, hacking of customers credit cards.
The case of Orekoya’s family whose children were kidnapped by an househelp sourced through a popular e-commerce site cannot be forgotten in a hurry. Yet, with many cases reported daily at various police formations acrosss the country, the value of e-commerce has grown monumentally.
A report from the Central Bank of Nigeria (CBN) in February showed that the value of Nigeria’s electronic e-payments rose from N18.1 trillion in 2012 to N35.1trillion last year.
With its convinience, ease of transaction and product choices offered, e-commerce sites have continued to attract more users. Many businessmen and others are tapping into the budding industry.
However, experts say some are still skeptical about using online platforms, especially, virtual malls.
“This is because they have either been badly burnt in some of their e-transactions or had heard stories from others concerning the situation,” says Badru Momoh, an e-commerce enthusiast.
Meanwhile, an analysis of e-payment frauds by the Nigeria Interbank Settlement System (NIBSS) last year showed that there was a significant rise of 78 per cent in the volume of fraudulent cases between 2013 and 2014. Therefore, it is understandable why there are fears among users and prospective users, despite the boom in the sector.
Recently, one of the victims of e-commerce fraud, Mr Okechukwu Chibuike, narrated how he almost lost his business because of an e-commerce transaction gone awry.
Chibuike started the business of buying and selling of cars as soon as he acquired enough capital to fund the venture offline. But later fell for a scam when he tried buying via an e-commerce site which he failed to mention.
“I thought I had made it big when my first container arrived and I sold my first series of cars. It was like a dream come true, especially, when I started getting returns on my investment. From then on, I worked hard to build my business into a big enterprise. “After some years, I heard about an opportunity to sell and buy cars through online platform. At first I was sceptical about online transactions because I had heard stories about Yahoo boys or 419 guys. I was, particularly, careful not to become a victim of their tricks. From the tales I had heard, the conmen’s tactics were to lure unsuspecting people to send money to the swindlers via Western Union Money transfer or to use magical methods, popularly known as Juju, to catch their victims. This bolstered my resolve to be vigilant of such traps.
“Nevertheless, when I heard about one of the online platforms, I shelved my doubts and I was very interested in giving it a trial. I had heard that I could reach a broader audience through this platform and that I could put my cars up for sale and buy from other sellers who have cheaper cars. I decided to experiment with the platform by buying a product from its network and that was when my problems started,” he said.
However, he was later shocked when he saw a 2010 Toyota Camry model that was advertised for N1.5 million.
“I thought it was a fair price since I did not have to pay for shipping and other import duties. I contacted the seller through the details he put on the online platform and I tried to make arrangements for the purchase. The man was nice on the phone and he asked that I should send seven per cent of the money to his bank account before I could get my car. He said it was a way to safeguard him from fraudsters and to reassure him that I was serious about the transaction,” he said.
Despite the assurance, Chibuike still had his doubt.
“I was doubtful about the transaction but I understood his anxiety, since I also had trust issues. I told him about my business and about how I sold cars as well. From then on, we started chatting via emails and text messages. He told me about how he sold cars regularly and how he was willing to help me sell my cars to others through the electronic platform. True to his words, he brought the car to me and I thought he was a credible sales man,” he said.
This bolstered his trust in e-commerce. He didn’t know that the trust displayed by the online sales man was a bait to swindle him and put him into trouble.
“Afterwards, I decided to trust him to sell some cars for me. I gave him the keys to the cars because he said some customers wanted to confirm the authenticity of his products. Unknown to me, this was a means for him to have access to my cars. One morning, I woke up and was greeted by a knock from some police men who claimed that I was an accomplice of a fraudster and a thief. The car he sold to me was stolen and the police had been trying to trace the car and arrest the person(s) involved in its disappearance.
“I was asked about how I met him after I had proved to the police that I was also a victim. I mentioned the online platform where I met him and I told them to make enquiries from them. When the platform was asked to show a database of people that had sold and bought items from them, they were unable to produce a record,” he said.
Recently, Chibuike was introduced to another online platform, Efritin.com but he was very careful because of his past experience. However, this one seems to be genuine because of their identification and verification process.
“When I heard about the process at first, I was still not convinced, until they came to my house to physically verify me and confirm that I was an authentic seller. My previous experience forced me to confirm if their process was real. I sent them a picture of my identity card but they refused to accept it until they saw me physically and they checked my ID card thoroughly to confirm that it was real. After this, my confidence in them was restored. It is my expectation that with this new platform, I can still achieve what I originally intended to get from my decision to participate in the online market in the first place,” he told The Nation.
Chibuike is not alone in the web of e-commerce scammers. He is one out of the numerous victims of online crooks.
Security of transactions has been a major issue for not just buyers but potential investors who want to contribute to the e-commerce industry. According to an e-commerce analyst, Yinka Agbede, advance in technology also requires an increase in safety issues.
However, to ensure that the e-commerce space is safe for users, owners, the banking industry, the telecommunications and even the National Identity Management Commission (NIMC) have started taking measures to curb fraud through biometric data capturing.
According to a statement, Efritin.com said its platform has taken steps to protect users including users of classified ads sector. While the e-commerce sites came when the scam in the e-commerce is at its loudest, Efritin.com urged customers to see its platform as a safer platform for consumer to consumer transactions in the country.
Their verification process, which is the first of its kind in the local classified ads industry, is a means to properly confirm the identity of each seller on the site’s platform & this is being embraced by citizens like Okechukwu Chibuike.
Talking about its process, it said sellers are verified within 48 hours of an advert placement before the product goes live on the site’s network.
“The requirement for this verification is a valid government issued ID, including National Identity card/ driver’s licence/voter’s registration card. Through this means, sellers can be tracked from the identification process, which can only be done face to face. Efritin.com’s unique verification process makes them one of most reliable and dependable classified ads platform in the country,” the firm stated in a staement.
Apart from Efritin.com, e-commerce sites, such as Jumia, Konga, and DealDey, have also adopted security checks to protect consumers and their brand reputation.
However, experts are hopeful that with ongoing biometrics verification number (BVN) scheme of the CBN in the banking sector, and the cyber-crime law, the incidence of scams on e-commerce will reduce soon.
