Cybersecurity is a relentless cat-and-mouse game, and the rise of generative AI has made cyberattacks more sophisticated than ever. In response, PayPal—owner of Venmo—is harnessing AI to stay ahead of evolving threats. The company has introduced a dynamic, AI-powered scam alert system as part of its fraud prevention efforts to protect its global user base. “We need to be smarter and faster than the scammers, and we’re combating AI used by bad actors with more intelligent AI used for good,” said Yigit Yildirim, SVP of global fraud prevention at PayPal. These AI-driven alerts, now rolling out for Friends and Family transactions on PayPal globally and on Venmo in the US, notify users before sending money if a transaction may be a scam. The system tailors its response based on risk levels: at high risk, it blocks the transaction entirely; at lower risk, it suggests verification or provides cautionary prompts. This adaptive approach is designed to avoid “warning fatigue”—the desensitization that occurs when users repeatedly see the same generic message. “If you send the same friend money for lunch every week but always receive the same generic warning to watch out for scams, it not only interferes with your payment experience, but it leads you to ignore the warnings altogether,” Yildirim explained.