The AI Shopping Wars: How Riskified Is Fighting Back Against Bot Fraud

Picture this: You're chatting with what seems like a helpful AI shopping assistant, only to later discover it was actually a sophisticated bot designed to exploit refund policies. This scenario is playing out across online retailers as fraud groups increasingly weaponize AI technology.

The Double-Edged Sword of AI Commerce

While conversational AI has revolutionized customer service, its dark twin - automated fraud - is costing merchants millions. Riskified's research reveals that transactions involving large language models carry 2.3 times more risk than standard Google search traffic in some sectors.

"We're seeing fraudsters use AI agents to game return policies, manipulate promotions, and create fake orders at scale," explains Assaf Feldman, Riskified's CTO. "The very tools meant to enhance shopping experiences are being turned against businesses."

Building Digital Trust in Real Time

The upgraded platform introduces two game-changing features:

AI Agent Identity Signals leverages Riskified's vast merchant network data to instantly verify whether an AI user is legitimate. This happens during live conversations, allowing businesses to make informed decisions about refunds or exchanges.

AI Agent Policy Builder gives merchants unprecedented control. Retail teams can now craft custom defense strategies against specific threats like automated return abuse or order padding schemes - no coding required.

"Think of it as a digital bouncer for your store," Feldman says. "It learns the patterns of bad actors while ensuring genuine customers get seamless service."

Joining Forces Against Digital Fraud

The battle against AI-powered fraud just got reinforcements. Riskified announced a strategic partnership with cybersecurity firm HUMAN Security, combining their AgenticTrust technology with Riskified's risk management expertise.

This collaboration creates a unified defense system that applies consistent trust policies across all customer interactions - whether human or AI-driven. For merchants drowning in sophisticated scams, it's a much-needed lifeline.

Key Points:

• AI fraud risk is 2.3x higher than standard traffic in some industries
• New identity verification happens during live AI conversations
• Custom policy builder lets merchants block specific scam types without IT help
• Partnership with HUMAN Security creates unified trust framework
• Solution aims to protect both business revenue and customer experience