Investing in anti-fraud technology has ceased to be a cost for e-commerce and has become a prime investment to protect revenue. With the exponential growth of online shopping, the risks associated with electronic fraud have increased significantly and anti-fraud technology has also had to evolve, reaching its 3rd generation.
If in the 1st generation the anti-fraud solution was based on static rules and the 2nd generation was based on consumer risk scores and manual review processes, in the 3rd and last generation fraud protection is automated.
The 3rd generation solutions are powered by artificial intelligence (AI) to deliver superior analytics capability that considers large volumes of data to identify suspicious patterns and behaviors in real time Machine Learning the analysis models of this generation are dynamic and constantly evolving, following the evolution of the techniques used by criminal fraud networks.
This technological combo generates deeper analysis and more accurate decisions, financially guaranteed against fraud, seeking to preserve and increase e-commerce revenues. Companies like Signifyd already offer third-generation anti-fraud tools in the Brazilian market.
“In this latest generation, AI is an important ally to automate this step hitherto very dependent on manual, slower and more expensive processes. Early detection of fraud occurs from a thorough analysis in milliseconds, ensuring that legitimate transactions are processed without interruptions or delays for good customers, and fraudulent orders are blocked before causing financial damage.This helps maximize conversions and protect the consumer experience”, explains Gabriel Vecchia, Senior Commercial Director at Signifyd Brasil.
AI and the battle against fear of fraud
an study conducted by Adobe and Signifyd, makes clear that the damage of fraud to e-commerce goes beyond fraud itself: about 3.5% of orders in Latin America are potentially fraudulent (Statista), but 28% of the e-commerce interviewed for the study still refuse between 6% and 10% of the requests they receive (Much more than necessary and, in large part, for fear of fraud.
The technology of Signifyd for example, it helps e-commerce in Latin America, one of the most fraud-prone markets in the world, approve on average 7 to 15% more orders, removing restrictive barriers at checkout, while profits are protected by a financial guarantee against chargebacks.
In the battle against e-commerce fraud, AI has shown to have conquered its space by allowing prevention systems to continually evolve, learning and adapting to new fraudulent tactics and keeping e-commerce a step ahead of fraudsters.
Data matters
“Containing data from the world's largest E-commerce Network, built over years of global operations, contributes to this capacity for evolution and anticipation. A huge volume of data, when well used in cross-analysis and intelligent, offers important insights for anti-fraud defenses. Sharing and analyzing data on a global scale allows visibility of fraud trends and rapid responses to emerging threats”, adds Gabriel.
With the help of advanced technology, investment in anti-fraud prevention now protects revenues, both by improving the consumer experience and increasing conversion, as well as reducing financial losses with false positives and fraudulent chargebacks.
