NoFraud Acquires Yofi AI to Tackle $100B a Year Return Fraud and Abuse
October 8, 2025 – New York, NY – NoFraud, a leader in ecommerce fraud prevention, today announced the acquisition of Yofi AI, a leading return fraud and policy abuse detection platform for ecommerce 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.
10–11%
of all retail returns are fraudulent
$100B+
lost by merchants every year
50%+
of consumers admit to engaging in return abuse
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 over $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.
Merchants need solutions that stop fraud in real time without hurting loyal customers. Already trusted by brands like Rhode Skin, JD Sports, and Caraway Home, NoFraud and Yofi AI deliver a unified platform that analyzes behaviors instantly, helping merchants manage risk as it’s happening.
“Policy abuse has become the single biggest threat to retail margins, It’s forcing merchants to absorb billions in unnecessary costs and putting loyal customer relationships at risk. We built Yofi AI to stop this head-on, and by joining NoFraud we can take that fight to scale — giving merchants the only platform that protects profits in real time.”
Jordan Shamir, Co-founder and CEO of Yofi AI.
Together, NoFraud and Yofi AI are the first unified solution built for the realities of modern ecommerce, delivering full-spectrum protection across the customer journey, including:
Prevention of return, promo, and reseller abuse; bot attacks; and account takeovers
AI-powered alerts and controls that give merchants more visibility and decisioning power
Reduced operational strain and margin erosion, allowing CX teams to focus on growth initiatives
“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.”
Scott Gifis, CEO of NoFraud
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.
