The industrialization of e-commerce fraud

With the accelerated growth of e-commerce, Brazil faces a significant increase in digital fraud, a phenomenon known as “industrialization of fraud”. This movement, which already significantly affects markets such as the United States and Europe, begins to gain strength in the country, representing a threat to both consumers and retailers.

According to the “The State of Fraud and Abuse 2024” report, global losses caused by e-commerce fraud reached more than US$48 billion in 2023, with projections of exceeding US$343 billion by 2027. This exponential growth is due, in part, to the sophistication of digital crimes today, driven by technological advancement, which enables fraud networks to act at scale. 

Using techniques such as address manipulation and fraudulent redirectors, as well as tools such as artificial intelligence (AI) to increase the sophistication of attacks that are increasingly complex to detect, organized criminal networks can, in a matter of minutes, perform scams generating millionaire losses.Faced with this scenario, the need for innovative and robust solutions to protect the sector has never been more urgent.

“E-commerce companies already find anti-fraud solutions in the market with technology development that accompanies the sophistication of the fraud industry. AI has a very important role in the prevention of fraud”, says Gabriel Vecchia, commercial director of Signifyd, a global protection company.“It is with more technology that fights the technology of crime”. 

If fraud also increases as digital commerce grows, early preparedness is the key differentiator for companies looking to win this race.Global e-commerce fraud mitigation trends come with the adoption of advanced technologies such as AI, which enables verification of thousands of data in real time to identify varied types of fraud with greater accuracy and at the same scale as specialized fraud networks. 

With the emergence of the new generation of AI-based anti-fraud solutions, investment in smart protection has come to be seen as a strategic business impetus, compared to a necessary expense as was seen in the past with traditional tools based on manual processes. 

This is because the market offers options of partners in protection that, by automating processes become capable, for example, of taking responsibility for losses generated by fraudulent transactions, contributing to the maintenance of the financial health of e-commerces.“The third generation of anti-fraud invests in the development of advanced technology because it understands that its function is to contribute to the growth of e-commerce through efficient anti-fraud protection, and that the only way to do this is anticipating the evolution of fraud with the support of the analytical capacity of artificial intelligence”, concludes Gabriel.