Sales Strategy

How AI Is Becoming Retail’s First Line of Defense Against Fraud April 11, 2025 (0 comments)

Singapore--Retail fraud is rising fast, driven by the shift to online shopping. According to The Edge Singapore, e-commerce scams topped Singapore’s scam statistics in early 2024, making up 27.3% of all cases. As digital threats grow, AI has become critical to fraud prevention.

[Image via istockphoto.com]

AI Detects Fraud Faster Than Humans Can

Retailers use AI to monitor transactions, detect suspicious patterns, and spot counterfeit goods. As noted in the article, AI’s ability to process large volumes of data makes it ideal for identifying fraud that would otherwise go unnoticed.

With 92% of Southeast Asian shoppers trusting AI for product recommendations and 90% for summaries, its acceptance is clear. But beyond convenience, the article highlights its real value in reducing fraud-related losses.

Passwords Are Out. Biometric Logins Are In.

Traditional passwords are a weak link. According to the report, 95% of consumers in Singapore struggle with passwords and 57% abandon services due to login issues.

Retailers are shifting to passwordless systems powered by AI, such as facial recognition and fingerprint scans. These methods offer both security and ease of use, minimizing drop-offs during login.

Customers Want Control Over Their Data

The article also highlighted the need for better data privacy. Instead of requesting full ID documents, retailers can now use decentralized digital IDs. These let customers share only what’s necessary, stored securely in a digital wallet.

Learn more in this article by The Edge Singapore.