Welcome back to Fraudology.

AI is here, and it’s making every kind of fraud we already know cheaper, faster, and harder to catch. We are going to walk through a handful of stories that show exactly how AI enabled fraud is showing up right now. From card testing at scale to one very messy fraud story.

That story is Polymarket, and I spend some real time on it. It’s rare that we get this much visibility into a company’s actual fraud details. A Wall Street Journal investigation lays out the stolen debit cards linked to thousands of new accounts and a fraudulent deposit rate that hit 80%. I also get into AI-generated deepfake delivery orders, a bank coalition’s new warning about agentic commerce fraud, and a warning about AI voice cloning scams.

We aren’t eliminating fraud, we never can, but we can get the information to be as fast or slightly faster than the fraudsters.

What you’ll hear in this episode:

• Why AI-enabled BIN attack fraud and card testing are up over 75% according to at least one fraud vendor, and how fraudsters are now optimizing payment authorization the same way legitimate payment teams do
• A full breakdown of the Polymarket fraud scandal, including the prediction market fraud risk baked into its business model and the leadership decisions that made things worse
• Why Polymarket scrapped its same-source withdrawal rule to speed up payouts, and how that decision opened the door to real money laundering prevention failures
• A serious account takeover fraud exploit where a new account created with someone's stolen SSN could inherit their existing balance and linked cards, no password needed
• Why compliance staffing fraud programs need people with actual prevention experience, not just investigators brought in after the fact
• How growth at all costs fraud risk plays out when a CEO's response to an 80% fraud rate is reportedly "just keep growing and pay a fine"
• A new bank coalition report on agentic commerce fraud, and why AI shopping agent chargeback liability still has no real framework under current Visa and Mastercard rules
• An AI-generated fake delivery order used to attempt a retail theft at Walmart, and a Georgia police chief's warning
• What a real chargeback monitoring program actually looks like from the inside, and why Polymarket landing a fraud vendor like Riskified says a lot about how serious this problem became

You should listen to this episode if you:

• Work in payments, card fraud, or retail fraud prevention and want a grounded look at how AI is scaling attacks you already know
• Are building or evaluating a chargeback monitoring program and want a real, public example of what happens when fraud rates spiral
• Care about prediction market fraud risk or are watching the regulatory and legal fallout at companies like Polymarket
• Are responsible for compliance staffing fraud programs and want language for why prevention expertise matters as much as investigative expertise
• Are tracking agentic commerce fraud and want to understand the AI shopping agent chargeback liability gap that still hasn't been solved
• Want practical, real-world examples of AI-generated fake delivery orders and AI phishing scams to bring back to your own fraud team