Why 42% of Companies Rely on Layered Defense Stacks to Combat Payments Fraud

Payments fraud is becoming more sophisticated, forcing retailers and operators to rethink their security protocols. According to new data, nearly half of companies now use a 'layered defense' strategy involving three or more AI-driven security tools. For a merchant, this means the days of relying on a single fraud check at the point of sale are over. As you offer more financing options like BNPL or revolving credit, your risk profile increases. Criminals are using AI to mimic legitimate customer behavior, making it harder to spot bad actors manually. This shift toward layered defense is about balancing security with the customer experience. If your fraud detection is too aggressive, you lose sales from legitimate customers. If it is too weak, you face costly chargebacks and losses. By implementing multiple layers—such as identity verification, behavioral analytics, and automated transaction monitoring—you can catch fraud before the money leaves your business. The report highlights that companies using these multi-tool stacks are significantly more effective at preventing losses than those relying on legacy systems. For operators, this is a signal to audit your current payment gateway and financing partners. Ensure they are using modern, AI-backed defenses to protect your revenue and your customers' data.

Source: PYMNTS

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