Nidhi Khare notes that while stronger enforcement is necessary, artificial intelligence-powered tools capable of spotting fraud in real time can make the system more proactive and preventive
While emphasising that innovation must never come at a cost of consumer safety, Nidhi Khare, Secretary, Department of Consumer Affairs, has noted that consumer trust remains at the core of ecommerce.
While addressing an industry event, hosted by the PHD Chamber of Commerce and Industry (PHDCCI), Khare added that while stronger enforcement is necessary, artificial intelligence-powered tools capable of spotting fraud in real time can make the system more proactive and preventive.
From a regulatory lens, Ravi Gandhi, Chair of PHDCCI’s Retail, Ecommerce and Consumer Affairs Committee and President of Reliance Retail, pointed out that the lines between digital commerce and telecom are blurring, creating new risks. He warned that phishing scams, fake calls, and cyber frauds are becoming more advanced and require equally sophisticated defenses.
“AI and data analytics can serve as our first line of defense, catching irregularities and red flags that human oversight may miss. To build real consumer confidence, we must keep updating our regulations while embracing these new technologies,” he explained.
Setting the broader context, Hemant Jain, President, PHDCCI, spoke about the double-edged nature of AI. While India’s digital revolution has unlocked huge opportunities, it has also increased risks such as fraud, counterfeiting, and even deepfakes. Citing the Reserve Bank of India’s latest report, he noted that although the number of fraud cases fell, their total value jumped threefold to Rs 36,000 crore in FY25.
