Volume growth is accelerating across institution types, geographies, and portfolio segments at a pace that legacy operational models were not built to absorb. First-party fraud is compounding the pressure, arriving through the same channels and with the same apparent credibility as a legitimate dispute, while consuming identical operational resources and corrupting the transaction data issuers rely on for fraud decisioning. This report examines how issuers are responding operationally: through evolving staffing models, network-facilitated pre-dispute tools, proprietary case management platforms, and emerging AI-driven automation. Key findings reveal that a small number of leading institutions are deploying machine learning to reduce false positive declines and route dispute cases to automated resolution pathways. For most institutions, rules-based systems and manual processes remain the norm. Consequently, the gap between the leading edge and the mainstream is widening.
Clients of Datos Insights’ Fraud & AML service can download this report.
This report mentions Mastercard and Visa.
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