Merchants shouldn’t have to choose between protecting profits and protecting loyal customers. Yet that’s exactly what today’s ecommerce landscape has forced on them — until now.
Returns abuse, promo misuse, reseller schemes, bot attacks, and account takeovers aren’t edge cases anymore. They’re everyday realities draining margins and overloading customer experience (CX) teams. And with more than 10% of retail returns estimated to be fraudulent, costing merchants over $100B annually, the stakes couldn’t be higher.
That’s why we’re excited to share that NoFraud has acquired Yofi AI, a leading return fraud and policy abuse detection platform backed by Nyca Partners, Point72 Ventures, and eBay Ventures. Together, we’re giving merchants the first unified solution to prevent fraud and abuse across the entire customer journey.
Why This Matters Now
- Returns abuse is rising fast. More than half of consumers admit to some form of return abuse.
- Legacy fraud tools stop short. Most systems only look at payments and chargebacks, leaving post-purchase blind spots.
- CX teams are stuck firefighting. Abuse investigations pull them away from serving good customers.
As Jordan Shamir, Co-founder and CEO of Yofi AI, explains:
“Policy abuse has become the single biggest threat to retail margins. By joining NoFraud, we can take that fight to scale — giving merchants the only platform built to protect profits end-to-end.”
What NoFraud + Yofi AI Deliver
- Full-spectrum prevention: Protecting profits by blocking returns, promo and reseller abuse, bot attacks, account takeovers and payment fraud in one platform.
- Stronger signals and controls: Tools that help merchants identify abuse as it happens, while keeping trusted customers moving seamlessly.
- Less operational strain: Giving CX teams the freedom to create better customer experiences and drive business forward — not get stuck in investigations.
Scott Gifis, CEO of NoFraud, put it this way:
“Together with Yofi AI, we’re taking a massive step forward to change how merchants manage risk. Legacy tools weren’t built for today’s realities. Our platform meets risk where it happens, in real time, protecting margins and helping merchants grow.”
What Yofi AI Brings to the Table
With Yofi AI joining NoFraud, we’re expanding protection beyond traditional fraud detection. Their solutions focus on three critical areas that will shape the next phase of the NoFraud platform.
Bots & resellers
- Defend against automated bots and unauthorized resellers before they disrupt product launches or drain inventory
- Close loopholes like deferred bot actions and API exploits while keeping experiences seamless for legitimate customers
Return fraud & abuse
- Distinguish between genuine returns and fraudulent activity, including “wardrobing,” counterfeit swaps, and excessive returns
- Enable adaptive return policies tied to customer trust scores, reducing abuse while rewarding loyal shoppers
Telemetry & behavioral intelligence
- Analyze device, network, and behavioral “digital body language” to identify fraud and abuse, even as attackers change tactics
- Detect alias accounts, card testing, and suspicious employee activity that traditional systems miss
- Integrate easily with 25+ prebuilt connectors, reducing deployment effort and time to value
- Benefit from a shared defense network of 1,600+ merchants, improving detection accuracy across the ecosystem
CX as the Next Growth Lever
Fraud and policy abuse aren’t just operational headaches, they’re CX challenges that directly impact loyalty and lifetime value. For too long, CX has been treated as a cost center, when in reality it’s one of the most valuable sources of insight and influence across the customer journey. The problem is that CX has often been forced to operate in silos, focused on putting out fires instead of shaping strategy. That disconnect wastes the insights CX generates and limits its influence across the business.
With Yofi AI, NoFraud is helping merchants stop fraud and abuse while also unlocking the data potential of CX as a true growth lever. When teams aren’t bogged down in investigations, they can spend more time strengthening customer relationships and running the business more efficiently.
The key unlock is automation. With decisioning moved to the background, policies scale effortlessly, exceptions don’t drain resources, and CX data becomes fuel for growth instead of wasted on manual reviews. Powered by agentic workflows, the system adapts as abuse patterns evolve — anticipating risk, enforcing policies automatically, and keeping every decision aligned with the brand promise. The result: CX shifts from reactive cost center to proactive driver of loyalty, efficiency, and growth.
What’s Next
Yofi’s capabilities are rolling into the NoFraud platform ahead of the holiday season, giving merchants powerful new tools right away. It’s part of our commitment to unify fraud and abuse prevention with agentic workflows that adapt in real time — protecting profits, breaking down silos, and elevating the customer experience automatically.
Thank You
We’re grateful to the incredible brands that trust us. Your partnership drives us to keep innovating. Together, we’re building solutions that help you go further, faster, and with less drag on your margins.
