The Balancing Act: Stop Fraud, Not Sales
E-Commerce fraud costs US retailers billions annually (chargebacks, stolen goods). **AI** is the frontline defense, but overly strict rules can block legitimate customers.
How AI Helps
- Behavioral Analytics: AI models analyze hundreds of data points (IP address, device fingerprint, time of day, order size) to score the risk of a transaction in real-time.
- Link Analysis: Identifying networks of fraudulent accounts that use similar shipping addresses or payment methods.
- Adaptive Learning: The AI learns from new fraud patterns and adjusts its rules automatically, something human rule-based systems struggle with.
The Goal
Reduce chargebacks without increasing false positives (legitimate orders被 incorrectly flagged as fraud).
