AI-Driven Fraud Detection and Mitigation in e-Commerce Transactions

Abstract

Digital technology has created new channels of digital transaction for e-Commerce and financial services distribution companies. The COVID-19 has intensified the adoption of digital transactions. With increased load, digital transactions have become more vulnerable to frauds and have created a lucrative avenue for fraudsters. Digital transactions pose a significant challenge to enterprises and customers for having secure business and financial transactions. To enhance the ease and convenience of the customers and business enterprises, the e-Commerce and financial service providers are deploying sophisticated tools that employ data analytics, AI and machine learning techniques. However, such tools are susceptible to compromise and challenging to enterprises and customers for having secure business and financial transactions. In this paper, we present the issues and challenges in identifying spurious online payments and detecting fraud in e-Commerce transactions. We also present the AI, and data analytics techniques are employed for the detection, prevention and control of online frauds in e-Commerce and financial transactions.