59% of Firms With AI Fraud Defenses Stop Losses Before They Start

For retailers, fraud isn't just a cost of doing business anymore—it is a preventable loss that directly impacts your bottom line. New data shows that businesses using multi-layered AI tools are twice as likely to stop fraud attempts before a single dollar leaves the company. If you are still relying on manual reviews or basic filters, you are likely leaving your financing and payment channels exposed to sophisticated modern attacks. The research highlights that 59% of firms using advanced AI defenses are stopping the vast majority of attacks before they start. This is critical for operators who offer consumer financing or Buy Now, Pay Later (BNPL) options. Fraudulent credit applications and payment defaults can quickly erode the margins gained from offering financing. By integrating AI-driven identity verification and transaction monitoring, you can reduce chargebacks and false positives. This means fewer legitimate customers are blocked at checkout, while bad actors are filtered out automatically. Transitioning to a 'prevention first' model allows your staff to focus on sales rather than chasing down disputed payments or investigating suspicious activity. As fraud tools become more accessible, the gap between protected merchants and easy targets is widening.

Source: PYMNTS

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