A card issuer can give an artificial intelligence shopping assistant permission to buy a customer’s groceries without giving it a card number it could use to buy anything else.

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That distinction was central to “When Fraud Becomes the Customer: The Next Battlefront for Issuers,” the September edition of the Payments Innovation Tracker® Series from PYMNTS Intelligence. Criminals can now use AI to mimic a customer’s voice, face and even typing rhythm. That makes it harder for an issuer to rely on a single check at login or checkout.

The report found that issuers have another way to protect customers as AI agents start shopping for them. They can use a digital token, a substitute for a card number, to specify what the customer has agreed to pay for.

Other findings showed what issuers stand to protect. Half of financial institutions said fraud had damaged customer loyalty and 44% reported harm to their brands or reputations.

Many institutions already have tools they can build on, including identity checks inside their banking apps. Pairing these checks with a token that carries the customer’s spending instructions gives issuers a way to support a new shopping habit while keeping the customer in control of the purchase.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes.

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