In the continuously transforming retail environment, particularly with the surge in e-commerce and digital transactions, retailers face increasing challenges in fraud prevention.
Jonathan Hancock, Head of Product & Innovation at The ai Corporation (ai), sheds light on the intricate dynamics of retail fraud and how his organisation is pioneering solutions to tackle these issues.
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With insights grounded in the latest trends and technological advancements, Hancock’s perspective offers a comprehensive view into the battle against retail fraud.
The new frontier of retail fraud
The global e-commerce market, projected to reach a staggering $6.4 trillion by 2024, has not only transformed the retail landscape but also escalated the risks and opportunities for fraud.
Hancock articulates, “We’re seeing an exponential growth in e-commerce, which, while beneficial, opens a Pandora’s box for fraudsters.”
He further elaborates on the shift in fraudster tactics, the impact of globalization, and the challenge of managing a deluge of transaction data.
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By GlobalDataWith fraud evolving beyond traditional methods to exploit new technologies, Hancock emphasizes the need for adaptable fraud detection systems. “Our mission,” he notes, “is to reduce the impact of fraudulent activities, allowing our customers to focus on their core offering.”
Anticipating the future of fraud
Looking ahead, Hancock predicts significant shifts in the retail fraud landscape, influenced by sustainability concerns and the rise of electric vehicles (EVs). “The surge in EVs necessitates more unmanned charging stations, which, in turn, attract opportunistic fraudsters,” he explains.
Alongside this, the increase in mobile wallet usage introduces new vulnerabilities. Hancock also highlights a concerning trend: “Abuse of Genuine” fraud, where legitimate transactions are deceitfully claimed as fraudulent.
To combat these challenges, ai employs sophisticated AI-powered systems capable of identifying and mitigating complex fraud types with precision.
Regional vulnerabilities and sector-specific risks
When asked about specific regions or sectors at heightened risk of retail fraud, Hancock points to the vulnerabilities of EV charging stations and the susceptibility of emerging markets due to rapid digital adoption.
He also mentions that small and medium-sized businesses (SMBs) and high-value sectors like e-commerce and luxury goods face higher fraud rates.
“We offer scalable solutions and expertise to bridge the gap in fraud prevention infrastructure,” Hancock asserts, highlighting the importance of industry-specific AI models and robust security protocols.
Leveraging advanced technologies in fraud prevention
The ai Corporation’s strategic use of advanced technologies such as AI and machine learning is pivotal in staying ahead of evolving fraud tactics.
Hancock describes the Autopilot Machine Learning (APML) technology and RiskNet® fraud management platform as critical tools in their arsenal.
“Our AI models and algorithms are designed to detect threats in real-time and adapt to new attacks,” he explains, emphasizing the role of advanced analytics and explainable AI in effective fraud management.
Overcoming challenges with innovative strategies
Finally, Hancock discusses the pressing challenges faced by merchants and financial institutions in mitigating retail fraud.
He underlines the importance of identifying vulnerabilities related to sustainable fuels and unmanned stations, as well as the critical balance between convenience and security in mobile wallets.
“By creating detailed profiles and analysing sector-specific data, we’re able to quickly detect unusual spending patterns and effectively mitigate fraud,” Hancock concludes, showcasing ai’s commitment to ensuring a smooth and secure retail experience.
As retailers navigate the complex terrain of digital transactions and fraud prevention, the insights and innovations provided by Jonathan Hancock and The ai Corporation offer valuable strategies to safeguard against the evolving threats in the retail sector.
