For this latest episode of the c-suite podcast, and the fifth of our series produced in partnership with payabl. and their Pay It Forward podcast, host Graham Barrett leads a thought-provoking discussion on one of the most critical challenges facing the payments and e-commerce industries today: fraud. As part of a wider series exploring trust, risk, and customer experience in the digital economy, this episode zeroes in on the escalating sophistication of fraudulent activity and the urgent need for businesses to stay ahead of increasingly innovative cybercriminals. Graham is joined by an expert panel featuring: Julie Fergerson, Co-founder and CEO of the Merchant Risk Council Felix Efren, Senior Fraud Analyst at Bolt Ismael Ghozael, Vice President of Products and Platforms at Decathlon Together, they provide deep insight into the current fraud landscape and how both global retailers and platform providers are responding to new and emerging threats. THE RISE OF AI-DRIVEN FRAUD Julie sets the stage by outlining a worrying statistic: 37% of internet traffic now comes from malicious bots, highlighting how widespread and relentless digital fraud attempts have become. She explains that the use of AI by fraudsters is rapidly transforming the nature of attacks, making them more automated, sophisticated and harder to detect. Fraudsters no longer need to write code or even use proper English – AI has lowered the barrier to entry for cybercrime. Felix adds that the trend is very much mirrored at Bolt, where AI has been used to facilitate friendly fraud and the creation of fake IDs. He notes the challenges of combating these types of fraud, especially as they become more difficult to detect with the human eye alone. Bolt has responded by working with local authorities and employing machine learning tools to verify ID data and counteract these schemes. As well as this, a particularly interesting topic raised by Julie is the difficulty in distinguishing ‘good bots’ from ‘bad bots’ as AI increasingly plays a role in legitimate consumer interactions, such as automated shopping. Felix responds by suggesting that the future could involve bots fighting bots, and points to a renewed focus on machine learning at Bolt to better respond to AI-driven fraud without overcomplicating their solutions. THE EVOLVING ROLE OF RETAIL Later in the discussion, Ismael from Decathlon offers a different perspective, given the brand’s majority in-store traffic (85%) across its 1,800 stores in 79 countries. While fraud is still a consideration, it is not currently a top priority for them. Instead, Decathlon is focused on delivering a consistent customer experience globally, with emphasis on their product design and customer communication. He explains that consistency is achieved through a balance of centralised strategy and local adaptation, ensuring that the company’s core values are preserved while still catering to regional needs. While Decathlon still conducts the majority of its business in-store, digital transactions now account for approximately 15% and are growing quickly. Ismael confirms that fraud is already becoming a concern, particularly as the company expands its third-party marketplace. To navigate this risk, Decathlon categorises fraud into three key areas: customer fraud (such as account takeovers), financial instrument fraud (unauthorised card use), and seller fraud from malicious marketplace vendors. Ismael highlights the importance of tailored strategies for each fraud type, explaining that the company must continually adapt as different parts of the business grow at different speeds. REAL-WORLD ATTACKS Julie shares concerns over how AI tools are enabling fraud at an unprecedented scale and sophistication. From replicating entire retail websites using simple screen captures to automating the creation of fake identities and accounts, fraudsters now have advanced technology at their fingertips. She compares the current moment to the early days of e-commerce, where internet fraud surged during rapid technological change. The ability to mass-test vulnerabilities and create fake account volumes at scale has made velocity-based fraud, such as refund scams, a growing threat. Julie shares an example where fraudsters exploited duplicate purchases to trigger customer service refunds, despite both orders being legitimate. Felix recounts a particularly damaging incident at Bolt, where a bug in their fraud system allowed a specific type of card from another region to be misinterpreted and authorised incorrectly. This flaw went viral on social media within 48 hours, with users spreading the loophole to obtain free food deliveries at scale. Restaurants were overwhelmed, and the situation escalated quickly, not due to traditional fraud methods, but a simple internal misreading of an error code. The case demonstrates how technical bugs, if combined with viral social media, can turn into widespread financial losses. Felix notes that social platforms, while not directly responsible, play a crucial role in amplifying or containing fraud, and Bolt now monitors them actively as an early warning system. SOCIAL MEDIA’S INFLUENCE & CLAWBACKS Julie and Felix agree that industry collaboration and communication are essential. While Julie acknowledges the challenges of free speech, she points out that most social media platforms are responsive when alerted to clear financial scams. Both she and Felix stress the importance of internal communication within fraud, legal and compliance teams, particularly as marketing departments roll out new AI-powered initiatives. Following from this, the concept of clawbacks is introduced: recovering losses from users who exploit bugs or commit fraud. Ismael queries whether Bolt uses this method, and Felix explains that it depends heavily on the region and regulatory framework. In some cases, they block access to the service until restitution is made. Julie notes that some companies block user accounts across multiple identifiers: device, name, email and payment method until compensation is paid, though she admits this approach can leave a bitter experience for genuine users caught in the process. REGIONAL THREATHS & GLOBAL CONSEQUENCES The conversation shifts to look at how fraud varies across regions. Felix explains how Bolt’s rapid expansion into new markets brings new fraud types with it, each one shaped by local behaviours, criminal networks and payment methods. From Europe to Latin America and Oceania, the threat landscape shifts, often exposing platforms to organised crime or exploitation of unfamiliar payment systems. Ismael agrees, noting that while large companies naturally become attractive targets, fraud itself remains a fundamentally local activity. At Decathlon, fraud detection is centralised across the organisation, but local teams are empowered to tailor controls based on regional patterns and trends. WHO ARE THE FRAUDSTERS? Julie offers a sobering insight into the real identity of many modern fraudsters. Contrary to the image of lone cyber criminals, much of today’s fraud originates from large-scale scam centres operating in countries like Myanmar. These facilities, some with over 500,000 individuals, are run by organised crime groups and often staffed by victims of human trafficking or forced labour. She describes a grim reality where technology, criminal enterprise and human suffering intersect. Cutting these operations off from the internet is nearly impossible and even if these people were freed, they’d leave with deep knowledge of how to commit fraud but little alternative for employment. Julie emphasises the need for broad education, not just within organisations but across society. She shares a personal anecdote about falling victim to a scam herself and highlights the importance of educating employees, developers, customer service teams and even families. She recommends watching a video by James Oliver on “pig butchering” scams as a useful tool for awareness. FIGHTING BACK: INNOVATION AND COLLABORATION As businesses strive to offer seamless digital payments, how can they also remain resilient against fraud? For Ismael, the answer lies in pooling resources. Decathlon is part of a wider retail group and is investing in collaborative fraud prevention and payments infrastructure that spans multiple brands. This strategy improves the ability to triangulate user data and identify legitimate customers more effectively. Felix takes a more philosophical view, calling fraud a never-ending battle. He argues that while fraudsters have the luxury of time to analyse vulnerabilities, fraud teams are often stretched thin. The solution isn’t to eliminate fraud entirely, an impossible task, but to remain reactive, adaptable and committed to enabling innovation, even as the risk environment evolves. Julie concludes with a note of cautious optimism. While she believes we are entering a difficult phase much like the early days of the internet, she also stresses that fraud is cyclical. Industry collaboration, advancing technology and persistent adaptation will eventually tip the balance back in favour of legitimate businesses. Felix echoes the sentiment, noting how just as the industry was beginning to stabilise post-3DS implementations, AI changed the game again. Despite short-term setbacks, the panel agrees: the fight against fraud is ongoing, but not unwinnable. FINAL THOUGHTS Fraud is evolving at pace, powered by AI and globalised criminal networks. But businesses are not powerless. Through innovation, strategic collaboration, local responsiveness and public awareness, the industry can lead a collective defence. As this episode makes clear, the fight against fraud is not just a tech problem, it’s a societal one. In partnership with PRCA members receive 10 CPD points for listening to this podcast if they log it on their CPD programme. View episode
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