According to Deloitte’s latest report on AI enabled fraud in retail, only 3% of retailers feel well prepared to address AI-enabled fraud risks. Additionally, 69% of retailers experienced AI-enabled fraud in the past year, and 87% expect fraud to keep rising. Kevin Luh, a partner responsible for fraud strategy and transformation at Deloitte, explained that the problem isn’t about awareness, as most retail leaders do recognize the importance of AI-enabled fraud. The elevated fraud risk includes the use of stolen credit cards, abuse of customer-friendly return policies, and promotional loopholes,” said Luh. As retailers pursue growth opportunities enabled by agentic AI, fraud and security needs should be treated as design inputs rather than an afterthought,” added Luh.