NEW YORK CITY, NY – 14/10/2025 – (SeaPRwire) – In an era where ecommerce is growing faster than ever yet margins are thinner than they’ve ever been, retailers face a new and often underestimated threat: policy abuse. The modern online shopper has evolved, and so have their behaviors—return fraud, coupon manipulation, and reseller abuse are now widespread, costing merchants billions every year. Against this backdrop, NoFraud, a recognized leader in ecommerce fraud prevention, has announced a decisive move that redefines the boundaries of fraud management: the acquisition of Yofi AI, an emerging powerhouse in return and policy abuse detection backed by Nyca Partners, Point72 Ventures, and eBay Ventures.
This strategic acquisition not only strengthens NoFraud’s suite of protection tools but also positions the company as the first provider to deliver unified, full-spectrum protection across the entire ecommerce customer lifecycle—from checkout to post-purchase returns. By integrating Yofi AI’s advanced behavioral analytics and policy enforcement capabilities, NoFraud aims to help retailers transform fraud prevention from a defensive cost center into a proactive driver of profitability and customer trust.
A Growing Epidemic: Return and Policy Abuse on the Rise
Industry data paints a stark picture. According to the National Retail Federation (NRF), approximately 10–11% of all retail returns are fraudulent, costing merchants more than $100 billion annually. Even more striking, over 50% of consumers now admit to having engaged in some form of return abuse—whether “wardrobing” (buying with the intent to return after use), exploiting promotional loopholes, or reselling discounted goods for profit. What was once considered rare or unethical has rapidly become normalized consumer behavior, forcing retailers to rethink how they define and defend against fraud.
Traditional fraud detection systems, designed primarily to prevent payment fraud and chargebacks, are no longer sufficient. They operate reactively, often focusing solely on financial transactions while neglecting the complex post-purchase behaviors that erode profitability. As a result, merchants are left with fragmented visibility and overstretched customer support teams who lack the specialized tools to handle evolving abuse patterns.
Building a Unified Defense for Modern Merchants
NoFraud’s acquisition of Yofi AI marks a pivotal shift toward holistic risk management. By combining NoFraud’s machine learning-driven payment protection with Yofi AI’s expertise in detecting and preventing policy abuse, merchants gain access to a single, unified platform capable of analyzing user behaviors in real time. This collaboration empowers businesses to make intelligent, instant decisions that protect revenue without introducing friction for legitimate customers.
The integration offers three core advancements:
- Comprehensive Abuse Prevention: Covers return, promotional, and reseller abuse, along with bot attacks and account takeovers.
- Real-Time AI Controls: Merchants gain dynamic visibility and decision-making power through adaptive machine learning models that detect and block suspicious activity as it happens.
- Operational Efficiency: The system reduces strain on customer support and operations teams, allowing them to focus on growth, loyalty, and customer experience.
Executive Perspectives: Turning Risk into Opportunity
“Policy abuse has become the single biggest threat to retail margins,” said Jordan Shamir, Co-founder and CEO of Yofi AI. “It’s forcing merchants to absorb billions in unnecessary costs and putting loyal customer relationships at risk. Yofi AI was built to address this directly, and by joining NoFraud, we can scale our impact globally—providing merchants the only real-time platform designed to protect profits without punishing honest shoppers.”
Scott Gifis, CEO of NoFraud, echoed the sentiment: “Legacy fraud tools were built for a different era. Today, fraud happens everywhere—at checkout, during fulfillment, and even after delivery. Together with Yofi AI, we’re empowering merchants to meet risk where it actually occurs, in real time, with the precision and speed that modern ecommerce demands.”
Preparing for the Holiday Surge and Beyond
The timing of this integration is strategic. With the holiday shopping season approaching—culminating in Black Friday and Cyber Monday—retailers are under intense pressure to maximize sales while minimizing losses. NoFraud plans to roll out Yofi AI’s capabilities within its platform before the peak retail period, offering merchants immediate access to enhanced protection during the busiest shopping days of the year.
This acquisition also lays the foundation for a long-term vision: building a connected fraud prevention ecosystem that adapts to emerging threats, supports data-driven decision-making, and strengthens customer loyalty through trust and transparency.
About NoFraud
NoFraud is a leading provider of ecommerce fraud prevention solutions, helping merchants detect and stop fraudulent activity without compromising customer experience. Leveraging advanced machine learning, real-time decisioning, and seamless integrations, NoFraud enables businesses to grow confidently while protecting their bottom line. Learn more at www.nofraud.com.
About Yofi AI
Yofi AI is a return and policy abuse detection platform designed to help ecommerce retailers identify and stop costly behaviors such as returns fraud, promotional misuse, reseller schemes, and account takeovers. By offering precision detection and real-time prevention, Yofi AI empowers retailers to preserve margins, streamline operations, and foster long-term customer loyalty.