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It’s early days for artificial intelligence use, but already most consumers—74%—are concerned it could be used to advance further fraud attacks. That’s the word from risk-management provider Abrigo in its latest survey. In related news, ClearSale launched a suite of tools to help retailers counter online fraud.
Fraud worries are rampant, with 90% of those surveyed worried about a rise in fraud. Of the 1,059 responding individuals, 45% say they were a victim of financial fraud. Of these victims, 24% say they lost $5,000 or more. The top three types of fraud were credit card theft, 53%; ACH or electronic payment fraud, 19%; and check fraud 17%.
As for AI’s use in fraud, some 74% are concerned, signaling broad unease about the quickly developing technology.
“Americans are expressing deep concern about rising fraud and the fear that AI advancements will add to rising fraud rates. Financial crime is always evolving, and that means we will need vigilant, ethical, AI-assisted crime-fighters to stop criminals using AI,” Ravi Nemalikanti, Abrigo’s chief technology officer, says in a statement.
Market research firm Propeller Insights conducted the survey for Abrigo in March.
Meanwhile, fraud-prevention provider ClearSale released a suite of tools for retailers. Called Preventative Intel, the suite includes Instant Decision, aimed at digital goods retailers, Automatic Decision, which ClearSale says can identify fraud in less than a minute with accuracy, and Complete Decision, which can automatically approve orders, block fraud, and flag suspicious orders for review.
Each tool has layers of service, ClearSale says. Complete Decision, for example, uses AI models, fraud rules, ClearSale’s global fraud database, external sources, and secondary review capability. ClearSale says a multilayered security approach is essential for retailers to take on fraud attempts.
