E-commerce has transformed the global marketplace, offering convenience but also increasing fraud risks such as payment fraud, account takeovers, and fake reviews, which erode consumer trust and affect brand loyalty. This study examines the impact of fraud on consumer confidence and evaluates mitigation strategies used by e-commerce platforms.Based on a survey of 450 respondents from Jakarta (55%), Surabaya (20%), Bandung (15%), and Medan (10%), the sample includes 52% male and 48% female, aged 18-45 years. Participants were selected for their active engagement in online shopping.Key fraud prevention measures analyzed include AI-powered detection systems, blockchain for secure transactions, and biometric authentication. Trust-building strategies such as transparent return policies, improved customer service, and security notifications are also assessed. Additionally, the study explores the role of regulations and industry collaboration in combating fraud.Through case studies and empirical research, this paper emphasizes a multi-layered security approach and customer-centric recovery strategies to restore trust and ensure long-term consumer loyalty. The findings offer practical insights for businesses enhancing fraud prevention while maintaining a positive user experience.