Business fraud has always been a difficult and costly crime to address, and the infusion of AI into the mix has made it an even more complex challenge, according to Leslie Lorenco, vice president of global channel sales at Sift.
The impact of AI in the space can be seen in some of the numbers from Sift’s
Q1 2025 Digital Trust Index released late last month, which showed that payment fraud attacks remain high at 3.3%, with sectors like financial tech and online marketplaces seeing particularly high fraud activity, Lorenco told MSSP Alert. The total cost of digital commerce fraud is expected to more than double in 2029, reaching $107 billion, according to the report.
“Fraud is an especially challenging problem to address because it constantly evolves and shifts,” she said. ‘The strategies that worked 18 months ago will no longer be effective. Tactics that grew in popularity during the pandemic, like Buy Online Pay in Store (BOPIS) fraud have morphed into new methods that often involve using AI, creating a ‘whack-a-mole’ scenario for merchants who rely on static rules-based fraud prevention that doesn’t account for user identity nor takes advantage of AI for fraud decisioning.”
Payment Fraud on the Rise
A 2024 survey by Sift revealed that businesses and consumers are seeing an increase of fraud driven by the rise of generative AI, with
two-thirds of businesses regularly facing AI-powered fraud.
Sift addresses this with an AI-powered platform that includes capabilities as payment protection, account defense, and dispute management and addresses areas like account payment and takeover, money movement, and chargeback and payment fraud.
Partner Categories
The San Francisco-based company has
updated its partner program to reflect the complex challenges of business fraud. This month, Sift created multiple partnership tiers based on technical capabilities, product certifications, and revenue goals, and also expanded the avenues for partners to work with vendors.
The partnership program includes three categories: service providers such as MSSPs and MSPs that assist with platform implementation, influence partners who refer customers to Sift, and authorized resellers who directly sell Sift products.
Benefits include dedicated partner support with direct access to partner managers and sales engineers, marketing tools like co-branded collateral and market development funds, technical training and certification programs, access to product demos and sandbox technologies, and deal registration and referral programs.
Fraud — A Challenge and Opportunity
MSSPs and other channel partners will need these features to grow their capabilities and tap into revenue opportunities in a global fraud detection and prevention market that is projected to grow from $28.8 billion last year to
$63.2 billion by 2029. Lorenco also noted that Forrester analysts predict that by the end of the decade, 90% of IT spending will be partner-assisted.
“Fraud patterns mutate constantly, especially with AI now being used to personalize scams and mimic legitimate users more effectively, companies need to work together to meet this moment,” she said, adding that given the expected growth of the fraud prevention space, “the opportunity has never been greater. Adaptable, automated, and identity-driven fraud prevention is what merchants need, and partners have a clear opportunity to deliver it.”
AI Ramps Up the Risk
Lorenco joined Sift in November 2024, bringing channel leadership experience from companies including Security Compass, Sophos, and infrastructure automation firm Puppet. She has observed the fraud landscape — and the role of service providers — evolve significantly over time.
“One of the most significant changes we’re seeing is the
rise of identity as a central pillar in both security and fraud strategies,” Lorenco said. “That shift has led to a growing trend known as ‘cyber fraud fusion,’ where traditional security channels are expanding their scope to include fraud prevention. MSSPs and MSPs are now in a prime position to capitalize on this evolution. They're no longer just security service providers – they're becoming SMEs in fraud as well, offering even deeper value to their customers.”
They’re helped by Sift’s platform — fighting AI-driven crime with AI — that allows them to integrate fraud prevention into their portfolio. “Ultimately, MSSPs and MSPs that can adapt to this expanded landscape, offering holistic security and fraud solutions, are poised to thrive,” she said. “It’s not just about reacting to threats anymore. It’s about proactively helping customers navigate a complex digital world.”
