In retail, what does automated fraud typically refer to?

Automated fraud in retail refers to fraudulent activities conducted through technology, often using automated systems or tools that exploit vulnerabilities in online transactions, payment systems, or customer data. This can include techniques such as bot attacks, where software automates the process of placing orders with stolen credit card information or exploiting promotional offers.

Unlike fraud committed by employees, which involves internal actions and potentially collusion or manipulation of company processes, automated fraud specifically leverages technology to carry out fraudulent actions without requiring human oversight at each step. Additionally, fraud that requires direct participation typically indicates that there is a level of human interaction or intervention required to accomplish the fraud, which does not align with the nature of automated fraud. Finally, while physical theft involves tangible actions occurring at a retail location, automated fraud occurs in the digital or online space, emphasizing the role of technology in executing these fraudulent acts.

Therefore, the emphasis on technology clearly highlights why this choice accurately defines automated fraud within the retail context.