Fake webshops exploit the trust of consumers. At first glance, they appear legitimate but serve only to steal personal information or payments. This type of fraud has a massive impact on consumers and the trust in online shopping worldwide. A solution that is both user-friendly and reliable is urgently needed, as highlighted again this week in news reports on the subject.
The Solution: Mutual Verification with a Digital Wallet
At the FIDES Plugfest, an event focused on innovative applications of digital wallets, it was demonstrated how a personal wallet can help combat online fraud. The idea is simple: not only does a webshop request information from visitors, but visitors can also verify the webshop. This is done via a digital wallet and a concept called "Login with Wallet."
When a customer visits a webshop supporting the "Login with Wallet" option, a QR code appears on the site. The customer can scan this code with their digital wallet. Before sharing any customer data, the wallet checks the webshop's reliability based on four verifications:
Domain verification: Is the domain genuinely owned by the webshop?
Chamber of Commerce registration: Does the webshop have a valid registration with the Chamber of Commerce?
VAT number: Is there a valid VAT number issued by the tax authorities?
Thuiswinkel Waarborg certificate: Does the webshop hold a valid Thuiswinkel Waarborg certification?
How Does It Work Technically?
An example of how this works can be seen in the Impierce Unime Wallet and the organizational wallet of Credenco. Here, the user receives an overview of the webshop's verification status. Optionally, the wallet can also indicate whether the connection is new or previously known.
The verifications are carried out using digital certificates issued by trusted authorities such as the Chamber of Commerce and the Tax Authority. The organization itself utilizes an Organizational Wallet, which can verify credentials without unnecessary sensitive data being exchanged.
Want to Know More?
With an organizational wallet, online fraud is virtually eliminated on websites that support this system. Consumers and webshops can interact securely and reliably.
This initiative represents a significant step toward a safer internet and a healthier online ecosystem.
Want to learn more about how this works and how your webshop can benefit? Contact us or explore FIDES demos to see how this technology is making the world of online shopping safer!
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