PayPal has launched a new artificial intelligence-driven scam detection system aimed at protecting users from increasingly complex online fraud.
The update, which includes integration with Venmo in the US, forms part of the company’s broader push to stay ahead of cybercriminals using advanced technology.
According to PayPal’s Senior Vice President of Global Fraud Prevention, Yigit Yildirim, the initiative uses powerful machine learning tools to analyse billions of data points and detect unfamiliar scam patterns.
These tools allow the platform to respond to threats in real time, even if the specific type of fraud hasn’t been seen before.
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Rather than offering the same generic warnings for every transaction, the new system adapts its alerts based on the risk level. For low-risk activity, users might receive a subtle prompt, while higher-risk transactions could be blocked automatically.
This approach is designed to maintain user trust and avoid “alert fatigue” — where too many repetitive warnings cause people to ignore them altogether.
Yildirim said the system aims to balance security with user experience, adding that frequent alerts for everyday payments—like sending lunch money to a friend—can desensitize users to real risks.
The solution uses adaptive AI that can draw similarities between past and present scams, helping users avoid fraud even without exact matches in the system.
