AI vs. AI: How Retailers Are Outsmarting Fraudsters in Real-Time

CUSTOMER EXPERIENCE: As customer expectations for seamless experiences rise, how should retailers balance innovation with maintaining customer trust and loyalty?

AI is a game-changer for retailers and the criminals that seek to defraud them. Retailers are using AI for predictive intelligence about consumer behavior. Fraudsters are also increasingly deploying sophisticated AI tools to conduct more frequent and complex attacks. We’re in an arms race against digital fraud, and retailers need to fight AI with AI.

AI and machine learning allow retailers to identify fraudsters quickly by analyzing their behavior as compared to other users at lightning speed. Algorithms are used to recognize patterns in a historical dataset, and then dynamically change a solution’s security rules to prevent future fraud attempts—even those that use methods that have never been seen before. This information can help differentiate legitimate intentions from fraudulent ones and inform decisions about other security steps required before any further action from a would-be bad actor.

These AI fraud protection solutions can be deployed seamlessly and at key moments in a customer’s journey. They work behind the scenes to ensure continuous protection and limiting friction for authentic consumers. By leveraging AI and integrating AI with other digital identity protection, organizations can detect and respond to fraudulent activities in real-time, thereby reducing financial losses and preserving customer trust in an ever more competitive retail environment.

Christophe Van de Weyer

CEO,​​​​​​​ Telesign

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