APP fraud happens when people are duped into making payments to fraudsters, believing they are undertaking genuine transactions. It relies on the fraudster's ability to manipulate confidence and create urgency through advanced social engineering techniques. Impersonation scam is where the fraudsters impersonate trusted entities to manipulate victims into transferring funds under false premise to acquire their account information, assets, etc. Key strategies to combat APP fraud includes: Using advanced fraud detection system to detect malicious fraud attempts. Educating customers on recognizing the potential scams and protecting themselves. Implementing transaction monitoring to identify risky activities on a real-time basis. Account takeover fraud is a forerunner to APP fraud. With ATO prevention solution, it is possible to prevent bad actors from fraudulent activities. Impose additional transaction checks with time delays for high-value or unusual transactions.

Criminal attacks on online retailers have increased dramatically since the COVID era. AI technologies are becoming highly scalable to empower fraudsters to heavily automate their sophisticated attacks and overwhelm rules-based prevention systems. Signifiyd's "State of Fraud and Abuse 2024" study indicated that efforts to place fraudulent orders climbed 19% in the first half of 2024 compared to the previous year. Recent report posted by Juniper Research, a Hampshire, UK-based consultancy predicts the value of e-commerce fraud to rise from $44.3 billion in 2024 to $107 billion in 2029 – a 141% increase. According to the author Thomas Wilson's statement , “eCommerce merchants must seek to integrate fraud prevention systems that offer AI capabilities to quickly identify emerging tactics. This will prove especially important in developed markets, where larger merchants are at higher risk of being targeted for fraud, such as testing stolen credit cards.” Merchants are adv...