Companies can use AI and machine learning tools to combat various types of ecommerce frauds

New Ideas in MarketingEssential news for marketers, summarised by YouGov
October 29, 2020, 12:17 PM UTC

By the end of 2021, ad fraud could cost ecommerce businesses around $6.4 billion.

AI and machine learning powered predictive analytics provide marketers with deep insights that help ecommerce businesses better understand customer decisions and behaviour. These tools can also help businesses showcase relevant product offerings according to consumers’ on-site behaviour.

With ecommerce sales achieving 209% YoY revenue growth, the channel attracts fraud types like credit card hacking, affiliate partner fraud, promo code abuse and more. Using AI and ML tools can help ecommerce businesses spot and tackle such fraudulent activities.

Businesses can use smart data analytics and AI based systems to analyse a legitimate customer behaviour, and then create a supervised decision tree to detect false transactions. Use AI-based tools to provide algorithm-powered personalised product recommendations and dynamic pricing to further increase revenues.

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