With every innovation that makes the security landscape safer for companies, fraudsters evolve their methods to bypass them. Now that artificial intelligence (AI) has burst on the scene, bad actors have even more ways to create havoc that can cause irreparable financial and reputational damage. 

As an entrepreneur using payment processing for ecommerce businesses, it is vital that you understand the current AI-based threats so that you can mitigate their effects on your company.

How AI is useful to fraudsters.

Criminals take advantage of the very traits of AI that are so attractive to end users. Most notably, this technology has the ability to perform multiple processes using thousands of data points. As a result, criminals are able to multiply the scale and speed of their cyber attacks. 

Additionally, they can exploit AI to create artificial and misleading text and images without even needing to possess a great deal of technical expertise.

Social engineering.

Psychological manipulation is one of the key ways that fraudsters are employing AI to their advantage. This technique is frequently used to trick people, i.e., you or your staff, into divulging sensitive details that could compromise your security or your customer data.

This can be done in two major ways. Phishing involves utilizing AI to create text messages, emails, or websites — that appear to be legitimate and trustworthy — for the purpose of gathering user names, passwords, or payment details. 

Alternatively, AI can be used to create deceptive texts purportedly from familiar entities such as the company CEO that request the user to provide sensitive details.

Deep fakes.

The strength of today’s AI technology is allowing bad actors to generate false audio, video, images, and texts that depict a person saying or doing something that never actually occurred. 

When these methods are directed toward a particular company, bad actors can imitate the voice, image, or communication patterns of one of your trusted authorities to elicit information such as payment details or private personal information, causing damage to both you and your customer.

Automated attacks.

The power of today’s AI means that the technology can be used to mount a massive assault with great speed and efficiency. For instance, credential stuffing involves an AI system matching stolen credentials against online accounts until the right one is found. 

These systems can accomplish in minutes or seconds what humans would not be able to do for hours, days, or even longer.

AI can also use bots to pose as humans in order to click on links, complete forms, create new accounts, and interact with websites to carry out fraudulent activities. 

As a result, safeguards such as verification processes can be bypassed, putting businesses of all sizes at added risk of AI-based payment provider processing fraud.

How businesses are fighting back.

Companies and the security experts assigned to protect them are not taking AI-based fraud lying down. In fact, they are using the same advantages of artificial intelligence that criminals exploit to foil their attempts.

One of AI’s greatest strengths is its ability to analyze large batches of data in order to detect trends and patterns. When it comes to ecommerce businesses, this can help to detect abnormal purchasing behaviors, including changes in frequency or the amount of merchandise bought by an individual. 

Since AI is constantly learning from historical data and modifying its suggestions, companies have instantaneous access to warnings about potentially suspicious payments, often before they go through the acceptance process.

Furthermore, AI-powered fraud detection is masterful at sniffing out complex fraudulent attacks involving several accounts, locations, or devices. This even includes criminal activities that happen across multiple channels, i.e., online or in-person. 

Within a matter of seconds, these modern AI-enhanced security measures can aggregate and communicate this data back to stakeholders, enabling them to take preventive measures before any damage can be done.

How can you protect your business from AI-based fraud?

Traditional security protocols may have worked well in the past, but they are no longer effective against the speed, scope, and adaptability of AI. What’s more, artificial intelligence is becoming smarter and more refined with every passing day. 

While you cannot stop the advance of these criminal activities singlehandedly, there are certain measures that you can implement in your business to reduce your risk of being vulnerable to AI-based payment processing threats.

Starting now, implement multi-factor authentication and other techniques that protect user passwords. Furthermore, ensure that only those who need access to sensitive information and systems are granted permissions.

In order for these protocols to work, you need to create a culture that promotes security awareness at every level of your business. 

To that end, create comprehensive documentation, and conduct regular training sessions that educate personnel about the various types of AI-based fraud, social engineering techniques, and the steps your business is taking to minimize its vulnerability.

Finally, invest in analytics platforms and security tools that are designed to use AI against the fraudsters. If you aren’t sure who to talk to about these technologies — and how you can incorporate them into your operations — your payment provider should be one of the first resources that you consult.

Payment processing scams hit at the very heart of the trust that is essential for your business’s success. Now that AI has quickly become ubiquitous, fraudsters have an even more frightening array of capabilities at their disposal. 

If you want to reduce the chances that your company will be the next victim of AI-powered fraud, take control of as many elements as you can.

While data breaches and digital crime of other types are unfortunately inevitable, tightening your internal protections is crucial. Additionally, you and your customers will benefit when you invest in AI-infused anti-scam technologies in your own right. 

Fight fire with fire, and make effective use of data protection tools and systems, and you will markedly decrease the chance that you and your customers will suffer from AI-related crimes.