By Aqueel Ansari, Co-Founder & CTO, Azmarq Technovation Pvt. Ltd.
With rapid digitisation, e-commerce has also witnessed the growth of a large number of attempts at fraud. With ever-evolving refined techniques, cybercriminals target loopholes in digital transactions to scam companies and consumers. To counter the trend, companies are making use of innovative technology solutions such as AI-based fraud detection and Rich Communication Services (RCS) order validation. These solutions not only protect customer information but also improve the overall shopping experience through secure, effective, and transparent transactions.
Revolutionising Security with AI Fraud Detection
Artificial Intelligence (AI) has transformed how businesses work altogether, and fraud detection is still a priority. Anti-fraud software relying on AI analyses billions of transactions in a single minute in real time through the use of machine learning algorithms. The systems are able to scan for patterns, identify abnormalities, and alert about any suspicious behavior so that the business can instantly rule out completing fraudulent activity before that.
How AI Detects Fraud
Artificial intelligence-based fraud detection tools analyse data from the past and adapt to the latest threats. They use a number of methods for fraud detection, including:
- Real-Time Detection: AI software operates in real-time, i.e., it has the capability to identify and prevent fake transactions in real time, eliminating the risk of loss for both the company and the consumer.
- Pattern Recognition: AI is capable of identifying irregular patterns in the activity of a user. In case an activity falls outside normal patterns, it can be put under closer observation.
- Risk Scoring: AI may also give a risk score for each activity against several parameters, such as the location of the fraud, the device used, etc. These higher-risk activities can be screened or blocked.
Enhancing Security and Interaction with RCS-Based Verification
While AI-driven fraud detection offers robust security against fraud online, more layers of verification are needed to guarantee secure transactions and customer confidence. That is where Rich Communication Services (RCS)-based order verification comes in.
RCS is an emerging messaging protocol that allows for a richer, more interactive messaging experience compared to SMS. RCS can be used not only by companies to engage with clients in the form of personalised content but also as a secure method of real-time verification for transactions. RCS-enabled order verification not only keeps consumers part of the process but gives them an added security layer coupled with a heightened experience.
RCS Verification Process
When a client is placing an order, the official phone number can receive an RCS message. RCS is distinct from a regular SMS message since it allows businesses to deliver more interactive materials such as buttons, carousels, and rich media. This can be used to authenticate orders in real time.
Here is how it works:
- Instant Updates: If a problem with the transaction is found, for instance, suspicious activity or a mismatch, the customer can be updated immediately using RCS. Moreover, they can even respond to the message to deal with the problem, dispute an order or report fraud.
- Verification Request: To ensure that the order is authentic, the RCS message will ask the customer to confirm the purchase. The customer will just need to click a “Confirm” button on the message, which will validate the order.
- Two-factor authentication (2FA): As part of providing additional security, the RCS-based order verification can also be coupled with two-factor authentication (2FA). Under this, the customer can be asked to type in a one-time code that has been delivered through their e-mail address or mobile number, it will add an extra layer of authentication to the customer before the transaction processing.
- Order Confirmation: The customer is immediately sent an RCS message confirming the order. The message may contain the order number, product details, and bill.
While overcoming internet fraud, companies need to innovate continuously so that they stay ahead of cyber hackers. With the help of artificial intelligence-based fraud detection tools, companies can quickly detect and revoke fraud attempts, while RCS-based order verification offers an additional insurance layer by interacting with customers in real-time directly. These two technologies combined allow online shopping to be secure, easy, and efficient, further safeguarding both consumers and companies.