PYMNTS report: Fraud costs financial institutions more than just money

AI-assisted source summary · not independently verified. Content standards

The PYMNTS Intelligence report says issuers can issue payment tokens to AI shopping assistants that are restricted by merchant, category, or amount, without exposing card numbers that could be used for other purchases. The report shows that 68% of issuers serving high-value customers believe AI agents shopping on behalf of customers require stronger security and fraud protection, while 42% of issuers rank fraud and disputes among the two biggest sources of card platform operating costs. If tokens are stolen, they remain subject to the original restrictions; familiar transactions can reduce friction, while unusual activity can trigger customer confirmation.