Stopping Fraud in the Age of AI Shopping Agents

Riskified, a New York Stock Exchange-listed company specializing in e-commerce fraud prevention, has partnered with cybersecurity firm HUMAN Security to develop a unified security framework aimed at protecting merchants in the emerging era of AI-driven shopping agents. The rise of consumers using large language models (LLMs) such as ChatGPT, Claude, Gemini, Grok, Llama, and Perplexity to research products and compare prices is creating both opportunities and risks for online sellers. While this technology can attract new customers and boost sales, traditional fraud detection systems may fail to recognize fraudulent transactions conducted by AI agents, potentially causing revenue loss, inventory manipulation, and reputational damage. Data from Riskified's merchant network indicates that traffic referred by LLMs can be significantly riskier than conventional sources. For example, one ticketing merchant experienced LLM-referred traffic that was 2.3 times more likely to be fraudulent than Google search traffic, while an electronics merchant recorded a 1.8-times higher risk rate. The company has also detected automated reseller arbitrage, where AI agents rapidly purchase products to resell at inflated prices through fraudulent storefronts, which may then be recommended by other AI agents. To address these threats, Riskified is introducing new tools including:

• AI Agent Approve — an MCP Server Package on AWS Marketplace that enables merchants and LLMs to communicate with Riskified platform APIs, accelerating safe adoption of AI shopping agents.
• AI Agent Intelligence — a dashboard to monitor orders originating from AI agents.
• AI Agent Policy Builder — a tool to detect policy abuses such as programmatic returns and reseller arbitrage.
The partnership will also integrate HUMAN’s newly launched Sightline platform with Riskified’s expertise in fraud prevention and chargeback protection. This integration allows merchants to apply consistent trust policies across both human and AI-driven transactions.

“In a world where AI agents transact on behalf of individuals, resolving identity and trust becomes more complex,” said Assaf Feldman, Riskified’s chief technology officer and co-founder. “By working with HUMAN and developing new agentic tools and capabilities, we give merchants a way to safely embrace this shift, turning what could be a threat into a new, profitable digital channel.”

John Searby, HUMAN’s chief strategy officer, added that the collaboration would “help establish a trusted ecosystem for agentic commerce” by enabling merchants to approve more legitimate AI-driven orders while blocking sophisticated fraud.

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Source: Ynetnews

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Frequently Asked Questions (FAQ)

Understanding AI Shopping Agents

Q: What are AI shopping agents? A: AI shopping agents are sophisticated software programs that use artificial intelligence, particularly large language models (LLMs), to conduct online shopping activities on behalf of users. This includes researching products, comparing prices, and potentially making purchases. Q: Which LLMs are mentioned in relation to AI shopping agents? A: The article mentions several LLMs that consumers are using for shopping research, including ChatGPT, Claude, Gemini, Grok, Llama, and Perplexity. Q: What are the risks associated with AI shopping agents for online sellers? A: Risks include fraudulent transactions that traditional fraud detection systems might miss, leading to revenue loss, inventory manipulation, and damage to reputation. Additionally, automated reseller arbitrage, where AI agents quickly buy and resell products at inflated prices, is a growing concern.

Riskified and HUMAN Security Partnership

Q: What is the purpose of the partnership between Riskified and HUMAN Security? A: They have partnered to develop a unified security framework to protect e-commerce merchants from the risks posed by AI-driven shopping agents. Q: What new tools is Riskified introducing to address AI shopping agent threats? A: Riskified is launching AI Agent Approve (an MCP Server Package on AWS Marketplace), AI Agent Intelligence (a dashboard for monitoring AI agent orders), and AI Agent Policy Builder (a tool for detecting policy abuses like programmatic returns and reseller arbitrage). Q: How does the integration of HUMAN's Sightline platform with Riskified help merchants? A: This integration allows merchants to apply consistent trust policies across both human and AI-driven transactions, providing a more unified approach to security.

Impact of AI Shopping Agents on E-commerce

Q: Are transactions referred by LLMs riskier than conventional sources? A: Yes, data from Riskified's merchant network indicates that LLM-referred traffic is significantly riskier. For example, one ticketing merchant saw LLM traffic that was 2.3 times more likely to be fraudulent than Google search traffic. Q: What is automated reseller arbitrage? A: This is a fraudulent activity where AI agents rapidly purchase products to resell them at higher prices through fraudulent online stores. These fraudulent stores might then be recommended by other AI agents.

Crypto Market AI's Take

The increasing adoption of AI shopping agents presents a complex challenge for e-commerce security, mirroring some of the evolving landscapes in the digital asset space. Just as merchants need robust systems to differentiate legitimate AI-driven commerce from fraudulent activity, the cryptocurrency market continuously seeks advanced solutions to ensure security and trust. At AI Crypto Market, we understand the critical need for sophisticated AI in safeguarding financial operations. Our platform leverages cutting-edge AI technologies for market analysis and automated trading, aiming to provide secure and efficient solutions for digital asset management. Explore our insights on AI-powered crypto trading bots to learn how AI is transforming financial markets, and discover our comprehensive approach to cryptocurrency compliance to ensure a secure trading environment.

More to Read:

• Understanding AI-Powered Crypto Trading Bots
• The Role of AI in Cryptocurrency Market Analysis
• Navigating Crypto Compliance: A Global Guide
• The Future of E-commerce Security in the Age of AI