Reference no: EM134038991

Question

As society shifts to be more digitally based and online shopping becomes an everyday activity for many, companies have had to adapt by upgrading their security measures and their approach to combating customer fraud. Fraudulent activity has also become more advance. According to McKinsey "The higher volume and greater sophistication of fraud have created two types of issues for companies: first, higher costs relating to fraud losses and operations to combat fraud, and second, significant customer experience challenges." Amazon is a company that has had to invest a large amount of money to ensure they stay on top of their online fraud activity. The company has invested "to build customized fraud-detection models, add decision logic to interpret the model's fraud evaluations, and assign outcomes such as pass or send for review for each possible fraud evaluation" as stated on their website that explains their Amazon fraud detector. I think large companies like amazon are in a position to better handle fraud detections due to their size and profitability. A company that is able to invest more into fraud detections and prevention is going to have less fraud activity and better customer service as far as handling fraud occurrences.