Every year, professionals from around the world come together at the Marketplace Risk Management Conference to discuss issues of risk on online platforms and other technology. Explore the most critical takeaways from 150+ industry-leading speakers spanning 70+ sessions. Then contact us to see how LegitScript can help you reduce risk, safeguard your brand, and grow your business with confidence.
AI Is Both Enabling and Stopping Fraud
Worldwide e-commerce losses due to online payment fraud leapt from $17.5 billion in 2020 to $41 billion in 2022. Increasingly, AI technology is becoming a key tool to both perpetuate fraud and prevent it.
According to CNBC, now that AI tools are readily accessible to the public, “criminals can easily create realistic videos of profit and loss statements, fake IDs, false identities or even convincing deepfakes of company executives using their voice and image.”
The South China Morning Post reported, “A multinational company lost HK$200 million (US$25.6 million) in a scam after employees at its Hong Kong branch were fooled by deepfake technology, with one incident involving a digitally recreated version of its chief financial officer ordering money transfers in a video conference call.”
In January 2024, Florida state representatives María Elvira Salazar (R-FL) and Madeleine Dean (D-PA) introduced the No Artificial Intelligence Fake Replicas And Unauthorized Duplications (No AI FRAUD) Act to “protect [citizens’] voice and likeness from misappropriation.”
Now, trust and safety teams around the world are seeking AI-powered solutions to combat AI-based fraud.
AI and Automation Could Help Combat AI-based Fraud
The Trust & Safety Professional Association (TSPA) recently explored uses for automation and AI, stating “automation [helps] in a myriad of ways to achieve several core trust and safety functions and objectives. In particular, automation can improve enforcement scale and speed, efficiency, consistency, and accuracy.”
Trust and safety teams can, for example, mitigate the risk of AI-based fraud by using automation to flag content requiring human oversight and organize said content for review based on priority.
Mastercard reported, “A recent survey found that 70% of companies use three or more tools to help strike the right balance between e-commerce fraud prevention efforts and a smooth consumer experience at each touchpoint.”
Combating AI-based fraud in the global online marketplace means trust and safety teams will need to continue to evolve by identifying risk at a scale not previously possible and potentially leveraging AI to assist them in more rapid, comprehensive detection.
Calculating ROI to Build a Case for Trust and Safety
Numbers represent value. Trust and safety teams need AI tools to combat skyrocketing AI-based fraud, and calculating return on investment (ROI) helps garner buy-in from key stakeholders.
One of the greatest roadblocks to investing in trust and safety is the perceived cost. However, the costs associated with navigating regulatory scrutiny, monetary violations, card network fines, and reputational damage are far greater.
Although return on investment (ROI) calculations vary across business types and industries, a generally applicable calculation subtracts the initial value of investments from the final value of investments, divides the result by the cost of investment, and multiplies that number by 100%. Your specific trust and safety ROI calculation may involve measuring seller and/or user retention, portfolio growth, or fine savings. After you decide which metrics matter most to your internal stakeholders, it’s important to recognize that risk and compliance ROI often transcends simple numbers and involves a narrative approach to conveying value to your company’s stakeholders.
LegitScript Supports Marketplace Risk
LegitScript was a proud Platform Sponsor for the world’s largest conference for marketplaces, hosted by Marketplace Risk. The conference included 800+ attendees, 150+ speakers, and 70+ sessions presented by global leaders such as Google, Walmart, and DoorDash.
LegitScript’s industry-leading Marketplace Monitoring solution helps reduce the risk of AI-assisted fraud.
Contact us for a quick strategy session.