Marketing Automation 002

How AI-Powered Technology Prevents Fraud for Your E-Commerce Business

When you’re running an e-commerce business, there are a lot of things to worry about. You might think that fraud prevention is just another one of those things. After all, how hard can it be? But fraud isn’t just a simple matter of confirming a customer is who they say they are and verifying their payment method.

It can be much more complicated than that.

To understand how AI-powered technology prevents fraud for your e-commerce business, let’s talk about what causes fraud in the first place then look at some solutions that will make it easier for you to protect yourself from bad actors that are roadblocks in keeping your customers happy, and your business from growing.

Use AI technology to prevent fraud and enhance customer security

If you’re an e-commerce business, you’ve got to have a handle on fraud and security.

As the world of digital payments expands, so too does the risk of fraud. An estimated $11 million per minute is lost to online fraud—and that number is rising. E-commerce businesses rely on AI technology to protect their brand and customer information from scams, cyber-attacks, hackers, and data breaches.

Using AI in combination with machine learning can help prevent fraudulent transactions before they occur by creating a system that learns from past mistakes and identifies emerging risks in real-time. Once they’re identified with artificial intelligence (AI), they can be addressed immediately by taking action against them as needed—such as removing suspicious accounts from your online store or canceling credit cards that may have been compromised in an attack against another merchant’s system (such as a POS).

Your customers benefit from a better and more secure experience.

  • Getting the best deals on your website.
  • Getting the best products for their needs.
  • Getting the most secure and seamless customer experience, thanks to AI software that detects fraudulent activity before it happens, preventing potential fraudsters from taking advantage of your website’s features by blocking them from being able to make purchases or enter data into any form fields on your site (such as names, addresses, credit card information, etc).

AI-PoweredTechnology identifies and prevents online payment fraud.

AI is a great way to identify dangerous patterns in your customers’ behavior. This can be done by looking at things like repeat customers, new customers, and long-term customers who haven’t made purchases in a while. AI can also identify other potential issues such as fraudulent behavior or someone attempting to use stolen credit card information. AI can also be used to identify potential issues with your customers’ data.

For example, it can look at the IP addresses of visitors to your site and alert you if someone is trying to access your site from an unknown location or using a VPN. This type of AI-driven protection prevents hackers from stealing customer data and using it for malicious purposes like identity theft.

Robinhood for example has an AI-driven system that uses machine learning to detect potential fraud. This is particularly useful because it can identify fraudulent behavior that isn’t easily identifiable by humans, such as when someone creates a new account with fake information or tries to buy a large number of shares without having enough money in their bank account.


As e-commerce grows, so does the need for better fraud prevention.

The benefits of using AI technology to protect your customers and keep them happy are clear. As we’ve seen throughout this post, AI can be used in a variety of ways: from detecting fraudulent transactions to preventing them altogether; from identifying potential fraudsters and onboarding new customers faster; to keeping existing customers happy with secure payment options.

In all cases, AI-powered technology works by analyzing huge amounts of data at scale—something humans simply can’t do—and providing results that are accurate enough for businesses like yours to use today.

Leave a Reply

Blog at

%d bloggers like this: