How AI Is Transforming Fraud Prevention In Ecommerce
VentureBeat, April 3rd, 2023
Artificial Intelligence (AI) is transforming nearly all industries, and ecommerce is no exception.
One of the areas where savvy online businesses are using AI to streamline operations is fraud detection. Where merchants once employed legions of employees dedicated to reviewing transactions, algorithms can now analyze millions of data points to flag irregularities and fraudulent behavior.
Successful fraud detection requires a delicate balance and extreme precision. On the one hand, merchants need to deny fraudulent transactions, which can be extremely expensive. On the other hand, they cannot deny legitimate transactions, which cause churn and reputational damage.