Monday, November 23, 2015

Alibaba, Flipkart, Snapdeal and Amazon using analytics for fraud detection

Analytics and advanced algorithms are helping e-commerce companies to battle online fraud. The nature of fraud keeps on changing and also become complex as various players become mature. Analytics have to be used constantly by these firms have to scan huge amount of transactional and master data to draw inferences out of them. The fraudulent transactions can be not only from the customers but also from various other players like sellers who use these market place. Various parameters are used in these algorithms to scan and ween out fraudsters. For example product pricing or discounts, consumer complaints can be an indicator if the seller is selling fake products. Fraud detection has become an area of competitive advantage for e-commerce companies like Alibaba, Flipkart, Snapdeal and Amazon.