Why fraud protection for e-commerce representatives is important
Over the past few years, experts say financial crimes have increased. According to a survey by Stripe, 62% of banks reported an increase in thefts. In addition to financial losses, banks have reputational losses. Due to the growing threats, protection against fraudsters is reaching a new level: there are solutions based on artificial intelligence.
One of the main factors increasing the number of financial frauds is the growth of e-commerce companies, where transactions are performed with insufficient security. In addition, the technological outlook allows fraudsters to improve their approach. For example, mass bot-attacks, where all hacking processes occur automatically, are gaining popularity.
These factors force financial institutions to increase investment in security mechanisms against attackers. Banks are using a variety of approaches. Cloud platforms allow for comprehensive customer data analysis and activity verification with every transaction. Thus, the software tracks any changes in behavior that may indicate security threats.
Another popular and practical approach is intelligent identification. Voice recognition and fingerprints demonstrate more data protection than standard verification methods.
Despite its high functionality and productivity, the digital ecosystem has several vulnerabilities. For example, if one company in the entire service delivery chain fails to update its security protocols, everyone in the mechanism will be at risk from fraudsters. Paying attention to each link and regularly monitoring its security is important.
E-commerce companies are often the victims of financial crime. On the one hand, these companies want to provide customers with a high level of service, where transactions should take only a few seconds. But on the other hand, the increase in speed involves simplifying the stages of identification. In turn, it opens vast opportunities for intruders. Therefore, experts advise keeping essential mechanisms such as the two-factor check and CAPTCHA.
AI and machine learning technologies are essential tools for preventing fraud. Such solutions analyze and remember massive amounts of information about customer behavior. The computer sends this request for additional verification if the transaction process exceeds standard scenarios. A similar approach is taken when there is an increase in activity in the system that could indicate an attempted theft of data or funds. The client automatically receives a transaction confirmation request. No further action is taken without his consent.
Many financial institutions are developing their AI-based fraud protection solutions. In this way, companies prevent risks and increase consumer confidence.
