How AI Can Help Prevent Fraud

One of the most pressing concerns that keeps retail professionals up at night is how to combat fraud. Retailers could lose upwards of $71 billion from fraudulent online transactions over the next few years, yet some executives feel that publicly acknowledging a fraud issue would harm their brand. One of the most significant fraud concerns merchants face today are false positives -- i.e., transactions attempted by legitimate customers that are tagged as suspicious by fraud prevention systems, ultimately leaving money on the table. Because their effect is so difficult to accurately measure, false positives are often ignored, and their cost greatly underestimated. However, a majority of retailers say that fraudulent transactions that aren't detected cost more than a legitimate transaction that's inaccurately declined, despite some evidence that the opposite is true. What's more, relatively few companies track false positives.