24th January 2024
The task of fraud prevention and security specialists is becoming more challenging as they try to assess the legitimacy of a shopper.
“It is becoming more challenging to differentiate between a good customer and a fraudster,” said Georgiana Hera, Product Owner, Alphacomm during a webinar by LSA today.
The fraud economy is a sophisticated network of cybercriminals that are collaborating with one another. As Georgiana pointed out, fraudsters are making better use of tools and technologies to work their way into taming any system. Merchants are left with no option but to ensure a layered protection and also count on any source of data when making a fraud mitigation decision. It is clear that AI is enabling bad actors to scam users out of their credentials with much more efficiency. One has to make apt use of biometrics, spot irregular patterns in a shopper’s behavior, focus on device tracking, IP tracking and geolocation, MFA etc. to be ready for any attack. In terms of how to act, where machine learning (a subset of AI) algorithms are proving their worth is – assessment of complex transaction data and delivering a risk score in a flash.
Ruwani Hewa, Product & Propositions Director, Nuapay mentioned that it is imperative to understand where and how the customer is shopping.
As for the trends to watch out for Georgiana referred to the threat of ATOs.
Shelley Hunter, Founder, Gift Card Reform highlighted the fraudulent activity associated with gift cards. Fraudsters prefer gift cards as they tend to have less stringent protection for buyers compared to some other payment options. Scammers can get quick cash, the transaction is largely irreversible, and they can remain anonymous. “(The industry is) not plugging the holes as one should,” said Shelley. According to her, scammers engage in online schemes by tricking people into buying gift cards so they can drain their balances.
The session also attended by Michael Smith, Co-Founder, LSA.
By Ritesh Gupta, Ai Events
