Artificial Intelligence Advances in Payment Fraud Detection

Artificial Intelligence (AI) continues to gain ground in the fight against electronic payment fraud. According to Adyen, a global payments firm, the adoption of this technology has allowed companies to reduce fraud attempts by up to 86%.

Additionally, the company reported that 35% of its customers have managed to completely eliminate fraud cases due to AI's ability to identify patterns of suspicious behavior, through a tool called Adyen Uplift.

“We have such a wealth of data that, in 90% of cases, we can identify the buyer. Even if it's their first time shopping at a store, our system can determine, through data analysis, whether they're a trustworthy customer and approve the transaction. If we detect unusual behavior, we block the transaction to protect our customers,” explained Ana Aguilar, Adyen's commercial director in Mexico.

He emphasized that the volume of information they process allows them to detect fraudulent activity with high accuracy. During high-demand events, such as Black Friday or Buen Fin in Mexico, Adyen processes up to 25,000 transactions per second.

Regarding the main threats, Aguilar noted that there are various fraud tactics, such as phishing, scams (purchase identity theft), and fraudulent refund requests. Most of these activities occur before the buyer reaches the checkout stage, the final stage of an online purchase, where the payment platform reviews the order, enters bank details, and confirms the payment.

"At the firm, we conducted a review right at that critical moment. We discovered that a massive processing system is key to identifying anomalous behavior, detecting irregularities, and cross-referencing data in real time to protect both the buyer and the business," he added.

The size of the fraud

During periods with high transaction volumes like the Buen Fin (Good End), the expected increase in online sales is accompanied by growing concerns about fraud. According to the Digital Report 2024, prepared by Adyen, an estimated 41% of digital businesses in Mexico lose between 10 and 13 million pesos annually due to fraud.

The same document highlights that concern about fraud increases in the final months of the year, as during peak seasons, such as the Buen Fin (Good End), companies focus their strategies primarily on increasing sales. However, this approach is not always accompanied by adequate fraud risk management, especially with regard to electronic transactions.

“Companies in Mexico are increasingly eager to adopt new technologies. Historically, there was less competition in the digital world, which allowed for more cost-focused strategies, and payments were often considered simply a basic commodity. However, today we see that payments have become a central and strategic element in our clients' operations.”