Explore how Dynamics 365 Fraud Protection provides actionable insights about return and discount anomalies


Microsoft Dynamics 365 Fraud Protection loss prevention is a cloud-based solution designed to decrease in-store fraud costs and improve operational efficiencies and revenue. Using the power of AI, loss prevention identifies anomalies and patterns that might indicate in-store fraud. The solution provides retailers with the benefit of connected knowledge from the fraud network.

It allows you to combat fraud associated with:

  • Returns
  • Improper discounts
  • Merchandise mishandling
  • Inventory turnover

The AI technology continuously learns and adapts to evolving fraud patterns. Adaptive AI is used to analyze historical data and identify patterns of anomalies in it.

You can upload historical data into the system so the adaptive AI models can look for anomalies. The AI intelligence technology works in conjunction with a collection of software services, apps, and connectors to turn your unrelated sources of data into coherent, visually immersive, and interactive insights (Power BI).

The historical data is then processed and used to generate reports that show both trends and anomalies.

The historical data must be imported from four entities:

  • Transactions
  • Sales
  • Payments
  • Payment method

Store managers and fraud investigators can use the reports to focus on anomalous entities that, according to the risk scores the AI models generate, might indicate fraud. The detailed reports provide trend analysis based on the return rate, the discount rate, and other key performance indicators (KPIs).

If outliers are detected when the reports generate, the adaptive AI models assign scores to rank them, based on their deviation from the average value in the overall data that was analyzed.

A higher score indicates a higher probability that a meaningful anomaly is present. A store manager can consult these scores as part of an investigation. The reports provide an aggregated view of the anomalies.

In Microsoft Dynamics 365 Fraud Protection, the loss prevention capability is cloud-based. The loss prevention features for Fraud Protection can be linked via an out-of-box app integration with Dynamics 365 Commerce. Therefore, store managers can quickly take action to mitigate losses.

To integrate the loss prevention capability with Dynamics 365 Commerce, you must complete these tasks:

  • Turn on the Azure Data Lake Storage service for your Commerce environment.
  • Turn on the loss prevention feature in your Commerce environment.
  • Add a service account and subscribe to Fraud Protection in your Commerce environment.
  • Configure loss prevention settings in Fraud Protection.