Reams have been written on just how much artificial intelligence helps eCommerce to know about customers, trends, and products in order to sell more. Admittedly, AI development services have an undisputed place in eCommerce solutions and AI has helped eCommerce operators deliver personalized custom services, gather data, and sell more. It is boom time for AI to help eCommerce in their sales efforts, with AI revenues expected to exceed $ 36 billion by 2025. It means that AI has been practice widely these days especially to prevent fraudulent activities and safeguard a business.
But, how to secure your eCommerce business? Here we are bringing the distinct point where you can find details on how Artificial Intelligence development (AI) enables Ecommerce to prevent and protect from frauds.
The AI manifestations in eCommerce
- Bots pop up when you visit an eCommerce site. The trend is towards AI-powered conversational bots that will provide voice assistance to help you find a product, know its properties, and place an order.
- Search for products and pretty soon you will find the site displaying details of products you have browsed and it makes a recommendation of allied products. The next time you log in and visit the site it shows personalized offers based on your past behavior.
- Stuff like this is routine for AI solutions providers. It helps in making customers feel more valued and quickly offer what they are looking for. However, as eCommerce operators, you will need to look at other areas where AI can be just as indispensable and invaluable. Your eCommerce operations should be backed by ultimate security to prevent a data breach at any point while running a business. If you have robust security for an eCommerce business, you can freely focus on the core business and form the strategies to expand business growth.
AI and fraud prevention/identification
- You may fall all over yourself to grab new customers but what if you become a victim of fraud? You lose more than just your profits. Buyers are sharp. Some will bend laws to your disadvantage. It happens on eCommerce marketplaces and affects sellers on such platforms as well as buyers. Artificial Intelligence development services can help to prevent fraud too. A Forter/MRC Fraud Attack Index indicates that one-fourth of online sales in the US are vulnerable to 79 percent of fraud risk. Increased use of EMV chip technology is also responsible for frauds at point of sale outlets in retail stores.
- Buyers may use credit cards to buy products online and when it ships they can contact credit card companies to raise a dispute.
- eBay sellers have reported that fraudsters receive a package, remove the genuine product and substitute it with another, and claim a refund.
- Sellers have no recourse but to effect refunds, suffering a double loss. If they do not do this then eBay will blacklist and suspend them. AI, in such instances, with the right measures put in place with the help of AI development services, can make life better for sellers on eCommerce marketplaces. It can be used to keep track of such buyers not only on that platform but on other platforms as well, identify suspicious buyer behavior and raise flags. It can be used by buyers while at the time of packing to generate substantive proof that they shipped a genuine product.
- Then there are hackers who steal credit card information and perpetrate identity fraud, leading to losses for online sellers. Even the eCommerce marketplace chargeback guarantee is of little help since, one way or the other, the seller or the marketplace operator loses money.
- Buyers are not immune to fraud by sellers and that, should it happen, affects the reputation of eCommerce marketplaces. Sellers offer items at low prices, lure customers and ship defective products or something else and disclaim all responsibility.
Using AI for eCommerce fraud prevention
Fraud causes financial damage as well as the loss of reputation. It may involve your business in controversy or file lawsuits against your business. Ecommerce operators, while focusing on AI to enhance sales, would also benefit by using AI solutions providers to improve fraud prevention techniques such as:
- Improved verification technology using a variety of parameters such as address verification and ML-based learning technologies to ferret out fraudsters or identify fraudulent activity.
- AI can help to keep track of devices used for transactions by developing definite profiles and matching them against databases of known fraudsters or adding such fraudsters to the list. It can also help to know whether it is a human conducting a transaction or if it is a bot.
- AI development services may employ a variety of supervised and unsupervised Ml techniques as well as anomaly detection with the use of an encoder to identify unusual events or activities or behaviors. It is most likely that a buyer who has committed fraud will do it again to another seller on the same platform or another platform. AI helps in ferreting out and flagging such buyers.
- While still not adopted, facial recognition could play a key role in the time to come to prevent eCommerce frauds by fraudulent buyers.
- You can know immediately if a user account or using a credit card has been compromised even when that actual user is not aware of it.
Fraud happens all the time in eCommerce transactions. It causes substantial loss since sellers lose the principal amount and value of the product besides their reputation. Also, sometimes businesses can be bankrupt because of a data breach or involve in legal matters. Why would you take the risk, if you can strengthen the security of your eCommerce business? Artificial Intelligence can help your business to prevent fraud and tighten the overall security. It pays to engage AI development services to strengthen fraud prevention and stay as secure as possible from all ingenious attempts at fraud.
Make your eCommerce business backed by AI security and run smooth business operations to level up your business.