NoFraud, an e-commerce fraud prevention provider, has acquired Yofi AI, a return fraud and policy abuse detection platform for e-commerce retailers backed by Nyca Partners, Point72 Ventures, and eBay Ventures. With Yofi AI, NoFraud is expanding beyond payment fraud to stop policy abuse at scale and turning fraud prevention from a cost center into a profit driver.
Return fraud and abuse is no longer a fringe issue. According to the National Retail Federation, 10-11% of all retail returns are fraudulent, costing merchants more than $100 billion a year. A recent survey found that over half of consumers admit to engaging in some form of return abuse, underscoring that what was once rare has now become normalized behavior.
Traditional fraud systems weren’t built for the realities merchants face today. They remain narrowly focused on payments, reactive to chargebacks, and prone to creating friction for good customers.
Meanwhile, return and policy abuse have overtaken payment fraud as the top challenge. Too often, the responsibility for managing these risks has fallen on customer support teams, without tools designed for the job.
Jordan Shamir, co-founder and CEO of Yofi AI, said that by joining NoFraud, they can be the only platform that protects profits in real time.
Scott Gifis, CEO of NoFraud, said the combined firms will change how merchants manage risk.
Merchants will begin seeing Yofi AI’s capabilities integrated into the NoFraud platform ahead of the holiday season, in time for Black Friday and Cyber Monday – the first step in a broader strategy to help retailers safeguard profits and build customer loyalty year-round.
