AI agent transactions disrupt fraud detection and spark disputes, experts warn

As AI-driven commerce rises, banks must move beyond traditional fraud markers and focus on subtle patterns and real-time monitoring to detect bot-initiated transactions and prevent unauthorized actions by autonomous AI agents

As artificial intelligence agents increasingly manage purchases on behalf of consumers, financial institutions are facing unprecedented challenges in fraud detection, dispute resolution, and transaction monitoring.

Peter Tapling, Vice Chair of the U.S. Faster Payments Council, warns that existing card dispute frameworks are ill-equipped to handle scenarios where AI-driven purchases technically follow authorization protocols but go against the user’s intent.

"We're entering a new era where consumers may claim, 'It wasn’t me,' and the bank responds, 'But it was your card,'" Tapling explained. "If an AI agent initiated the transaction without clear user consent, what then? We’ll need entirely new standards to address these gray areas."

Unlike traditional fraud markers, such as large outlier transactions, AI-generated payments often mimic typical user behaviour—making them harder to detect. Tapling suggests that banks may need to shift their focus to subtle patterns like unusual transaction timing, unfamiliar vendors, or clusters of small purchases that deviate from established norms.

As bot-driven commerce grows—whether via virtual assistants or integrated payment apps—Tapling emphasizes the importance of designing guardrails to prevent unintended or unauthorized actions by AI agents. This includes real-time monitoring capabilities that can distinguish between human-initiated and machine-initiated transactions.

Tapling, who leads PTap Advisory LLC and previously served as the founding CEO of Authentify, says that while AI brings clear efficiencies, it also demands a reassessment of accountability in digital commerce.

"There's no going back," he said. "Only forward—with better tools, clearer rules, and smarter oversight."