The last quarter of the year is always highly anticipated by retail. The biggest shopping movement starts with Children's Day, followed by Black Friday and Christmas. However, this movement brings a concern for companies: fraud.
In the last year, 8.9 million Brazilians were victims of some type of fraud. According to a study released by the National Confederation of Shop Managers (CNDL), 48% are related to transactions or sales made online.
For the fraud solutions and prevention specialist, Igor Castroviejo, Brazil Country Manager of 1datapipe, a consumer insights platform, one of the main tools used by scammers today is AI, mainly to bypass security systems of banks and fintechs. "With AI, they have been able to deceive users more easily, which has been causing significant damage, including reputational harm, to financial institutions," highlights Castroviejo.According to the Cybersecurity Almanac 2024, cyberattacks are expected to cost the global economy $9.5 trillion.
Throughout Latin America, 91% of companies have experienced a cybersecurity incident, according to a survey by EY. In Brazil, only in the last year, the number of scam victims increased by 70%, according to data from the Center for Economic and Business Research (Cebr), which represents an average loss of R$8.5 million per company.
For Castroviejo, investing in and applying cutting-edge Artificial Intelligence is the main solution for companies seeking to minimize the risks of fraud and scams. Currently, by combining technology with data analysis, it becomes possible to identify individuals prone to engaging in fraudulent activities. There are already software tools on the market that assess this person's digital footprints, including their online behavior, the IP of their device, and also the reliability of their phone and email address," he explains.
It is possible to see a trend in the use of technology, especially in South America. A survey by the Association of Certified Fraud Examiners (ACFE) shows that worldwide, 18% of professionals in the fraud prevention sector already use Artificial Intelligence and Machine Learning in their work, with another 46% of executives in the region residing in Latin America intending to incorporate them within the next two years.
“By using Machine Learning, companies can train their algorithms to identify the standard behavior of their users. If the system detects any abnormal operation, such as use in a different location or the purchase of products outside the profile, it can classify the transaction as suspicious and ask the cardholder for confirmation of use,” explains Igor.
There is a growing trend in the use of technology in South America. According to a survey by the Association of Certified Fraud Examiners (ACFE), globally, 18% of fraud prevention professionals already use Artificial Intelligence and Machine Learning in their work, while 46% of Latin American executives plan to incorporate them in the next two years. "With the application of Machine Learning, companies are able to train their algorithms to recognize their users' typical behaviors. If the system identifies an unusual operation, such as use in a different location or the purchase of products that do not match the usual profile, it can flag the transaction as suspicious and request usage confirmation from the account holder," concludes the 1datapipe Country Manager.
