(Source: https://pltfrm.com.cn)
Introduction
As Chinese live e-commerce continues to grow, overseas brands face increasing challenges from fraudulent activity, including fake orders, bots, and unauthorized transactions. Detecting and preventing these risks is essential to protect revenue, maintain consumer trust, and optimize live commerce campaigns. Leveraging AI solutions enables brands to monitor transactions in real time, ensuring safe and efficient operations.
1. Real-Time Transaction Monitoring
1.1 Detecting Suspicious Activity
Method: Use AI algorithms to monitor transactions, flagging unusual patterns or anomalies.
Benefit: Enables immediate response to potential fraud, preventing revenue loss and reputational damage.
1.2 Behavior-Based Risk Scoring
Approach: Analyze user behavior, such as rapid clicks or repeated small orders, to calculate risk scores.
Impact: Prioritizes investigation of high-risk activities and ensures accurate detection of suspicious users.
2. AI-Powered Fraud Prevention
2.1 Predictive Modeling
Method: Employ machine learning models to identify potential fraudulent patterns before they impact operations.
Advantage: Helps overseas brands proactively prevent scams and unauthorized activities.
2.2 Automated Alerts
Technique: Set automated alerts for unusual transactions or login attempts during live events.
Result: Enables instant action and reduces manual monitoring workload.
3. Enhancing Trust with Consumers
3.1 Secure Payment Verification
Strategy: Integrate AI-based verification tools to confirm the authenticity of payments.
Benefit: Builds consumer confidence and ensures seamless transaction experiences.
3.2 Transparency and Communication
Approach: Notify customers of security measures and verification processes during live events.
Impact: Reinforces brand credibility and encourages repeat purchases.
4. Post-Event Analysis
4.1 Transaction Auditing
Method: Review flagged transactions and analyze patterns to improve fraud detection algorithms.
Advantage: Strengthens AI models for future live events and reduces the likelihood of recurrence.
4.2 Continuous Improvement
Approach: Incorporate insights into live commerce strategy, including audience targeting and promotion planning.
Result: Creates a more secure environment for overseas brands while optimizing campaign efficiency.
Case Study:
A US electronics brand implemented AI-driven fraud detection during live events on Tmall. By monitoring transactions and user behavior in real time, the brand successfully reduced fraudulent orders by 40% and safeguarded both revenue and consumer trust.
Conclusion
AI-driven fraud detection is crucial for overseas brands seeking sustainable success in Chinese live e-commerce. By proactively monitoring transactions and mitigating risks, brands can protect revenue, enhance consumer trust, and focus on growing engagement and conversions.
PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries’ exports in China account for 97% of the total exports in Asia. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!
