The adoption of GenAI means these scammers are becoming more adept at creating convincing phishing emails and fraudulent websites. According to ACCC data, scams are particularly prevalent during the holiday season when consumers are inundated with promotional emails and are more likely to let their guard down. Threat actors exploit the increase in sales emails, with 48% of consumers reporting they have been targeted by a scam while shopping online during the peak holiday sales period.
The importance of trusting your data
As all retailers know, maintaining trust is crucial in the customer-retailer relationship to ensure repeat sales and referrals. Given most transactions with customers are now managed electronically using a bank card or via an online payment app there is extra responsibility on retailers to ensure their customer’s data remains secure. Maintaining a comprehensive data privacy and governance policy has never been more essential and is even more critical now GenAI tools have been added to the mix.
While Gen AI tools help retailers improve operating efficiencies and better understand customer buying behaviour, they are also being used by scammers to lure unsuspecting shoppers.
By maintaining stringent data governance practices, organisations can safeguard sensitive information, ensuring that any AI models used are trusted and operate with the highest level of integrity. Effective data governance involves setting clear policies and procedures for data management, ensuring data accuracy, and maintaining data security.
With peak shopping season upon us, there are some key steps retailers and financial services organisations can take to keep customers safe and prevent online fraud and scams:
- Robust Encryption: Ensure all sensitive data is encrypted both in transit and at rest. This means that even if data is intercepted, it remains unreadable to unauthorized parties.
- Access Controls: Implement strict access controls to ensure that only authorized personnel can access sensitive information. This minimizes the risk of internal data breaches and unauthorized access.
- Real-Time Monitoring and Analytics: Utilize real-time monitoring and analytics to detect and respond to suspicious activities immediately. This proactive approach helps identify potential threats before they can cause significant harm.
- Compliance with Regulatory Standards: Adhere to various regulatory standards such as GDPR, CCPA, and PCI DSS. This ensures that data handling practices meet the highest standards of privacy and security.
- Data Governance Tools: Use comprehensive data governance tools to maintain data accuracy, integrity, and security. These tools include data lineage, auditing, and policy enforcement, which are crucial for maintaining trust and compliance.
- Regular Security Audits: Conduct regular security audits to identify and address vulnerabilities. This continuous improvement process ensures that data privacy measures are always up to date with the latest security practices.
As the holiday shopping season approaches, the retail and financial sectors must be vigilant in protecting themselves and their customers from the growing threat of data breaches and scams. By leveraging real-time data analytics and implementing robust data privacy and governance practices, businesses can reduce the risk of fraud and build trust with their customers, delivering a seamless and secure shopping experience.
