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But the biggest threat for most merchants isnt organized cybercrimeits their own customers.
Over the past decade, weve seen customer-led fraud growing rapidly.
For a growing number of consumers, committing these types of fraud has become normalized.
They see it as a victimless crime.
Moreover, one in three (36%) are considering committing fraud in the future.
And the risks to merchants are considerable.
How can businesses fight back?
But they are often stretched too thin.
ML isnt just an additional layer of protection.
Importantly, ML allows for robust fraud and abuse protection at scale.
Humans can thus make better decisions and automate protection from fraud and abuse.
Fraud is becoming increasingly sophisticated, while legitimatecustomersare evermore demanding and quicker to complain or churn.
Merchants need to bring intelligence and automation to fraud if they are to grow.
Growing numbers of merchants are adopting AI-based, real-time tools which detect and block fraud automatically.
This enables online businesses to contain fraud risks while maintaining a frictionless experience for genuine customers.
Attention spans are short and customer loyalty is never guaranteed, so a seamless purchasing experience is crucial.
As a result, fraud teams can make better decisions, as well as adjust their fraud rules accordingly.
It also means fraud defenses can better spot and respond to new fraud attacks without direct human intervention.
Thus, merchants can keep one step ahead of fraudsters without unnecessary friction in legitimate customers shopping journeys.
The future of fraud prevention
Ecommerce fraud will only continue to grow and diversify.
Constantly pushing technology to adapt to these shifts is paramount.
The coming years will bring greater integration ofAI toolsinto customer service, payments, and delivery processes.
This doesnt mean asking every single customer to prove they are who they claim to bequite the opposite.
An ML-first approach rewards good customers with minimal friction, in addition to stopping fraud and abuse.
More importantly, it can help businesses take action against customer fraudsters who flagrantly break the rules.
Others pursue tighter sanctions.
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