AI is a powerful tool in the fight against online payment fraud. However, AI alone can’t provide all the functions merchants need to prevent fraud and avoid expensive, reputation-damaging false positives. It’s important for merchants to know where anti-fraud AI stands now, where human expertise fits into the current fraud-prevention ecosystem, and what’s on the horizon as AI improves.
AI fraud-prevention tools use real-time identity, device, location, and behavioral markers to score transactions for fraud risk and automatically approve those within the acceptable score range – all far faster than a human fraud analyst can. This capability makes it possible for merchants to offer online, mobile, voice, and omnichannel shopping without forcing customers to jump through multiple hoops to prove their identity before every transaction.