Foolproof Payments: How AI is Revolutionizing Payment Fraud

Identity fraud and scams cost consumers $47 billion in 2024. But consumers aren’t the only ones feeling the effects. Consumers who lose money to fraud may no longer trust the organization where the fraud occurred, causing them to close their accounts and seek business elsewhere. This makes strong fraud prevention even more important. 

But fraud prevention is more than just account security. Criminals have set their sights on vulnerabilities during the payment transaction process through the growing adoption of real-time payments and digital wallets. Because of the digital nature of e-commerce, card-not-present fraud and enumeration attacks have become attractive targets for fraudsters and cybercriminals. Even less sophisticated methods like chargeback fraud and card skimming remain popular among fraudsters. 

The goal is to help fraud teams think about where their fraud prevention processes may fall short and how AI can support stronger payment oversight. 

Key questions discussed in this Fraud Management report:

• How is payment fraud changing as money moves faster across digital channels?
• Why are many existing fraud controls no longer effective when a payment is made?
• How can AI help financial services providers better assess risk in real time, before funds leave the account?

Companies Mentioned:

Chase, FDIC, Klarna, Office of the Comptroller of the Currency (OCC), TikTok