Amazon's Ongoing Battle Against Rising Impersonation Scams
As the holiday season approaches, the pressure to shop quickly and efficiently often opens the door to scammers.
The latest weapon Amazon is wielding against this growing issue is advanced technology designed to stay a step ahead of bad actors, protecting its customers from falling victim to impersonation scams.
Scammers Become More Sophisticated
Impersonation scams have seen a significant surge in recent years.
The Federal Trade Commission (FTC) reported that in 2023, U.S. consumers flagged 330,000 cases of business impersonation scams and 160,000 instances of government impersonation.
However, these figures don’t reflect the full scale of the problem, as many scams go unreported to platforms like Amazon or delivery services such as FedEx.
Scott Knapp, vice president of worldwide buyer risk prevention at Amazon, acknowledged that while Amazon's methods to combat fraud have become more effective, the challenge persists.
He told Sourcing Journal:
"We know bad actors are getting better and better at mimicking anything that we can put out, in terms of warnings or authenticity."
Adapting to Changing Scam Methods
The FTC has observed a decline in phone-based scams, with consumers now reporting text message fraud at much higher rates.
Furthermore, multi-organisation scams are on the rise, where fraudsters may start by impersonating Amazon before directing victims to fake banks or government agencies for further manipulation.
Knapp highlighted the ongoing evolution of scam methods, noting that advancements in artificial intelligence (AI) are making these attempts more convincing.
He said:
"Gone are the days of being able to have your suspicions raised just because the grammar is awful. [...] But on the other side of the equation, for all the AI they have, we’ve got it as well, and are using it on our side to detect… these things so we can warn customers about it."
Harnessing AI and Machine Learning to Combat Fraud
Amazon’s use of AI and machine learning (ML) has proven essential in identifying emerging scam patterns and providing real-time alerts to its users.
By analyzing impersonation scam reports, Amazon can detect commonalities, which allows the company to take swift action and notify law enforcement if necessary.
Knapp further explained that these advanced technologies enable Amazon to act quickly:
"AI effectively helps hold bad actors accountable at a greater speed."
Beyond impersonation fraud, Amazon also employs AI to uncover counterfeits, fake reviews, and sellers making illicit alterations to products listed on the platform.
Responding in Real Time
Tracking impersonation scams can be difficult, especially since many fraudulent attempts occur off Amazon’s platform.
However, when the company identifies bad actors, it moves fast.
Amazon is capable of removing scam phone numbers on the same business day and shutting down phishing websites within hours.
In 2023 alone, its efforts led to the takedown of around 40,000 phishing sites and 10,000 phone numbers involved in impersonation scams.
The Power of Collaboration in the Fight Against Fraud
Despite Amazon’s capabilities, Knapp stressed that fighting fraud is a collective effort.
He admitted:
"Even at our size, we don’t have the whole picture. By working in consortiums and partnering with others, we can provide part of the data that then results in hundreds of call centers being taken down, but that probably wouldn’t happen if we were going it alone."
The company’s plea for collaboration is simple: when industry players unite to combat fraud, everyone benefits.
Knapp added:
"Any time we can stop fraud, we all get better. There’s no competitive advantage to going it alone against fraud."
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