Karisse Hendrick always breaks the latest news in online fraud trends, and this latest one is a doozy.

AI bots have emerged. The bots are not rule-based scripts but they appear to be driven by artificial intelligence and they have the ability to self learn and adapt their scheme to get transactions through.

The AI bots are hitting specific retailers in “swarms” for 24 hours and then disappearing.

They Are Exploiting Merchants Risk Vendors

The AI attacks are clever because they are exploiting the fraud tools that online merchants use. They use session attacks by submitting duplicate transactions at the same time but changing the payment method instantly from a low risk payment method to a stolen card. Since merchant vendor tools ignore duplicate transactions, they score the low risk payment method first and ignore the second transaction because it is considered a “duplicate”

This Is A Dress Rehearsal

“This is a dress rehearsal”, says Karisse and she is warning retailers to contact their technology teams and warn them that this hitting other companies.