Biometric recognition

Biometric Recognition for E-Commerce Sites – Unmasking Halloween Scammers

by Alex James

Halloween has reached the streets with high participation as it is the most awaited event. While it brings joy, enthusiasm, and trick-or-treating games for individuals, it is equally exciting for criminals. Fraudsters make their identities and onboard e-commerce platforms to make illicit purchases. Shopping stores announce big discounts during the event and while retailers are embracing digital transformation, mitigating fraud risks has become tricky for them. 

E-commerce platforms make enormous efforts throughout Halloween to prevent fraudulent purchases, chargeback costs, and reputational damage. Therefore, online stores require biometric security mechanisms to make them more efficient. While fraudsters use stolen information for illegitimate digital onboarding, AI-powered IDV solutions identify them in real time. This article further discusses how biometric recognition solutions safeguard e-commerce purchases. 

Increasing Threat of Halloween Scams in the E-Commerce Sector 

Equipping online stores with fraud prevention techniques can prevent additional losses and reputational damages. E-commerce platforms can unmask scammers by simply integrating AI-powered biometric security measures. As per National Retail Federation (NRF), the total Halloween sales are predicted to cross $10.6 billion in 2022. While the customers also involve fraudsters, placing necessary precautions has become a liability for online stores. 


E-commerce platforms are embracing digitization and are making biometric user authentication a part of their identification process. However, criminals are putting equal efforts to dodge identity verification. They are deploying spoofing and deepfake attacks to steer clear of identification. Furthermore, they use phishing attacks to trick inefficient biometric security systems and reap illicit benefits. More fraud risks are explained in the next section:

Phishing Attempts 

Scammers use phishing attacks to manipulate customers and steal confidential details. These include Personally Identifiable Information (PII), bank account details, and log-in usernames/passwords. Fraudsters create malicious websites and circulate scam e-mails to attract individuals. Furthermore, they announce big discounts, giveaways, and much more to make their platform look believable. However, with advanced biometric recognition solutions in place, the e-commerce sector can restrict fraudulent websites. 

  • Spear Phishing

A more targeted scam, spear phishing refers to sending fraudulent messages containing information related to the customer’s interests. In this case, users click on the links in texts and it redirects them to a malicious website. Upon arrival, the system asks for personal information which is later used by criminals for illegitimate digital onboarding

Bogus Retails Offers

Online stores announce sales, discounts, giveaways, and other such offers to attract more individuals during Halloween. However, criminals deploy similar techniques to exploit customers. 

Fraudsters attract users by making malicious sites and in turn, flee with their confidential information. Furthermore, this can also lead to the loss of millions as customers making online payments are less aware of whether their package will ever arrive. Hence, e-commerce platforms require biometric security checks to prevent fraud instances. 

Credit Card and Account Takeover Fraud

Along with other criminal risks, credit card and account takeover fraud are equally prevalent. Imposters see Halloween as their free pass to carry out illicit e-commerce purchases. Credit card fraud led to a huge loss for customers amounting to $32 billion in 2021. 

Criminals use stolen accounts to make purchases on e-commerce sites and escape biometric security checks. However, AI-powered IDV solutions are sure to mitigate their attempts. With facial features, voice, fingerprint, iris/retina, gesture, and palm vein pattern recognition, biometric security systems add extra layers of security to online stores. 

Biometric ID Verification – Safeguarding E-Commerce Sales

Integrating biometric recognition can help online stores to upgrade their fraud prevention mechanisms. While criminals deploy sophisticated attempts., AI-powered IDV services unmask them. Furthermore, biometric security solutions further benefit e-commerce platforms to safeguard Halloween sales in the following ways:

Fingerprint Analysis to Prevent Account Takeover

E-commerce platforms ask for customers to enroll their fingerprints for biometric identity verification and eliminate the need for using passwords. This way, online stores can prevent account takeover and fraudulent purchases because criminals can not replicate this biological trait.

Facial Recognition for Authorizing Payments 

By using their facial feature, customers can authorize payments. While credit card scams can increase financial and reputational loss, biometric screening helps online stores prevent fraud risks. 

Liveness Detection for Ensuing Real-Time Presence 

Biometric user authentication also offers liveness detection and gesture analysis which helps in ensuring customers’ real-time presence. This way, online stores can identify fraudsters committing spoofing attacks. Furthermore, e-commerce platforms can provide a secure shopping experience by integrating biometric recognition

Concluding Remarks

E-commerce platforms are using various techniques to increase their sales during Halloween. However, they are also experiencing a skyrocketing increase in fraud risks. In order to deter scams and provide a secure shopping experience, online stores need to incorporate biometric screening solutions. With advanced biological and behavioral analysis, e-commerce platforms can stay ahead of fraudsters. 

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