From targeting digital contracts with gift card theft to potentially liquidating a retailer’s cash reserve, this blog delves into the potential for AI-enabled fraud that retailers could now face. The article also explains how organizations can better defend themselves and their customers from AI-enabled fraud. Insights are provided by Palo Alto Networks researchers Matt Brady and Christa McHugh.
Who's Really Shopping? Retail Fraud in the Age of Agentic AI
Summary: This article explores how agentic AI could be used for retail fraud, discussing its potential impact and security concerns.
Key facts
- Agentic AI is expected to handle nearly 15-25% of all e-commerce volume by 2030.
- One in four data breaches could be the result of AI agent exploitation by 2028, according to an estimate.
- Organized Retail Crime (ORC) costs retailers on average $700,000 per billion in sales, with 57% of retailers reporting an increase in ORC activities within the past year.
- Threat actors are using AI to generate fake images for returns fraud.
Why it matters
The rise of agentic AI in e-commerce poses significant security risks, including potential fraud that could cost retailers millions. Understanding these threats is crucial for businesses to protect their operations and customer loyalty.