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The Growth of AI in the Fight Against Online Fraud
According to estimates, e-commerce losses to online payment fraud were estimated at 41 billion dollars globally in 2022, up from the previous year. As organizations worldwide realize the importance of verifying identities and optimizing their digital services, Artificial Intelligence (AI) is rapidly becoming a powerful weapon in the fight against online fraud.
The financial industry and e-commerce retailers are already using AI-powered fraud detection systems to safeguard their customers from fraud. For example, banks and credit card companies are utilizing machine learning algorithms to scrutinize customer data such as purchase history and location to detect suspicious transactions. And retailers are leveraging AI-powered fraud detection systems to prevent fraudulent orders and chargebacks.
AI can also be used to prevent account takeover fraud – which is when a fraudster accesses a user’s account by stealing their login credentials. AI-powered systems can monitor user behavior, such as the type of device used to access the account and location of the login, to detect suspicious login attempts. These systems can also use biometric authentication, such as facial recognition or fingerprint scanning, to authenticate the user and prevent unauthorized access to their account.
Melissa ID, part of Melissa’s Identity Verification Suite, helps organizations tackle identity fraud with a seamless, end-to-end process to establish and safely track customer data. The Biometrics Verification step features an algorithm that recognizes a matchup between the user’s selfie and their ID image. It can identify a set of over 60 facial features and distinguishes changes between the selfie and ID image including facial hair, makeup, age difference, hairstyle, skin imperfections, and positions in head pose. This technology gives businesses an added layer of security and the confidence in knowing their customers are who they say they are. For more information on Melissa ID, you can schedule a demo or connect with a member of our team by calling 1-800-MELISSA. And be sure to subscribe to our blog!