How Can Govt-Private Sector Collaboration Combat E-Commerce Fraud with AI?
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Synopsis
In a recent conference, experts from PHDCCI stressed the urgent need for collaboration between the government and the private sector to leverage AI in combating e-commerce fraud. With enormous losses from online scams, the call for action emphasizes stronger compliance and innovative technology to protect consumers and uphold trust in the digital marketplace.
Key Takeaways
- Collaboration is essential between government and private sectors to combat e-commerce fraud.
- AI technology plays a crucial role in real-time fraud detection.
- Strengthening compliance and monitoring mechanisms is necessary.
- Consumers must be educated about potential risks and protective measures.
- Continuous updates in regulations are required to keep pace with evolving fraud tactics.
New Delhi, Sep 17 (NationPress) The PHD Chamber of Commerce and Industry (PHDCCI) convened a conference on Wednesday, where specialists underscored the necessity for collaboration between the government and the private sector to utilize Artificial Intelligence (AI) in the battle against fraud in India's retail and e-commerce markets.
In the initial five months of 2025, Indians have suffered losses nearing Rs 7,000 Crore due to online scams.
The gathering in New Delhi featured high-ranking government officials, industry leaders, and tech experts deliberating on AI's capability to safeguard consumers and enhance trust in the digital economy.
Nidhi Khare, Secretary of the Department of Consumer Affairs, emphasized that consumer trust serves as the “foundation of e-commerce,” advocating for the responsible application of AI to identify fraud in real-time. She pointed out that while robust enforcement is essential, AI-driven tools that can detect fraud instantaneously make the system more proactive and preventive.
Padma Jaiswal, Secretary to the Government of UT/State, Union Territory of Puducherry, warned that unchecked fraud and counterfeiting could jeopardize advancements made through e-commerce.
“To create a transparent and fraud-free digital marketplace, we require enhanced compliance, product standardization, and improved monitoring. AI will be pivotal in safeguarding consumers while ensuring fairness for legitimate businesses,” she remarked.
Ravi Gandhi, Chair of PHDCCI’s Retail, E-commerce & Consumer Affairs Committee, indicated that the distinction between digital commerce and telecom is becoming blurred, introducing new risks. He cautioned that phishing scams, fraudulent calls, and cyber frauds are evolving, necessitating equally advanced defenses.
“AI and data analytics can act as our primary line of defense, identifying irregularities and warning signs that human oversight might overlook. To foster genuine consumer confidence, we must continuously update our regulations while embracing these innovative technologies,” he articulated.
Aman Jain, Member of PHDCCI & Director of Public Policy at Amazon, called for closer collaboration among government entities, regulators, and the private sector to enhance AI-driven systems capable of swiftly detecting and eliminating counterfeit products online.
Point of View
The imperative for a united front against fraud has never been clearer. The PHDCCI's emphasis on integrating AI tools into our regulatory framework marks a pivotal step towards ensuring consumer safety and fostering trust. As we navigate these challenges, a collaborative approach will be essential for safeguarding the digital marketplace.
NationPress
20/09/2025
Frequently Asked Questions
What is the role of AI in combating e-commerce fraud?
AI can analyze vast amounts of data to identify fraudulent activities in real-time, helping to protect consumers and businesses alike.
Why is government-private sector collaboration important?
Such collaboration ensures that both sectors leverage their strengths and resources effectively to create robust defenses against fraud.
What are the financial implications of e-commerce fraud?
E-commerce fraud has resulted in significant financial losses, with reports indicating that Indians lost nearly Rs 7,000 Crore in just five months.
How can stronger compliance and monitoring help?
Enhanced compliance and monitoring can prevent fraud by enforcing standards and accountability within the e-commerce ecosystem.
What steps can consumers take to protect themselves?
Consumers should remain vigilant, use secure payment methods, and report any suspicious activity to the relevant authorities.
