In this episode of the Fraudcast, Vito Petruzzelli and Gena Rivera welcome the legendary Coby Montoya, a seasoned fraud and payments specialist with two decades of experience across companies like PayPal, American Express, and Sift.
The episode’s community-driven format encourages live participation and features contributions from fraud professionals including Ryan, Matthew, and Toy. The conversation kicks off with Coby sharing how a start in customer service gave him unique empathy for the human side of fraud and risk prevention—a perspective that continues to influence his approach even as technology changes.
Much of the discussion focuses on the evolving balance between automation (machine learning and AI) and human judgment in detecting and combating fraud. While the panel acknowledges that many legacy practices—like manual phone verification and simplistic signal-checking—have been left behind, they agree some older tools, such as IP address data and AVS, still retain value when used intelligently. Coby emphasizes that manual review is shifting from routine transaction approvals toward a more strategic “field intelligence” role, providing critical feedback to inform system improvements. The group also explores company structures and the importance of operational and analytical teams working closely, advocating for formal governance and shared escalation procedures to manage risks more holistically.
Timely topics around contemporary threats are addressed, from the increasing sophistication of phishing and social engineering attacks—which now blend urgency with convincing fake content—to the challenges of brand impersonation via cloned websites. The group debates how best to educate and protect consumers, discussing everything from creative UX changes to industry standards for verifying legitimate commerce agents. Looking to the future, they touch on the impending rise of AI-powered shopping agents and the associated questions about new fraud vectors and liability. The episode ultimately offers a practical, candid look at the state of e-commerce fraud today, blending technical know-how with real-world advice and an open invitation for the community to participate in ongoing collaboration.
Chapters:
00:00 Engaging Community During Summer Break
06:29 Bias in Fraud Analytics Discussions
07:43 Future Role of Fraud Professionals
12:22 Rethinking IP Address Importance
16:10 Rethinking Risk and Operations Strategy
19:53 Targeted Phishing Threats
21:26 Enhancing Security: Transaction Friction
24:23 Enhancing UX through Visual Differentiation
28:29 Generative AI Impacts on Trust
33:23 Optimizing AI Through Governance
36:18 Holistic Governance and Accountability
40:07 Agentic Commerce: Liability Issues
41:19 Assessing Financial Risk in Companies