AI-powered fraud is rising fast: What it means for student offers in 2025

Artificial intelligence is reshaping the fraud landscape at speed. Ravelin’s AI vs AI: Fraudsters vs Fraud Fighters 2025 report shows that 64% of merchants believe they have already been targeted by AI-enabled fraud. More than half, at 51%, are worried about the effect this could have on future growth and 39% are concerned about the impact on revenue.

The report shows that online payment fraud (53%), fraudulent chargebacks (46%) and account takeover (42%) are the areas where merchants expect the biggest impact. There is another vulnerability that calls for attention. Targeted promotions such as student discounts can become an easy entry point for fraud when misused.

So how can businesses continue to offer exclusive deals that delight genuine customers without leaving themselves exposed?

AI is changing the fraud landscape

The rise of AI has made fraud more scalable. Fraudsters are no longer limited to manual tactics. They are using AI to create phishing emails, fake scripts and even synthetic IDs to exploit businesses at scale.

For merchants this means that every potential gap in the customer journey is under threat. Fraud is no longer confined to payment systems and now touches account security, refund claims and promotional offers too.

When student discounts become an entry point

Student discounts are designed to reward a specific audience. They build long-term loyalty and attract young customers who are at the start of their buying journey. But the very features that make these offers attractive also make them vulnerable.

Fraudsters are increasingly using AI to generate fake identification documents that appear legitimate and can slip through manual checks or low-level verification processes. For retailers offering student-only promotions, this means that traditional methods of validation are no longer enough to prevent misuse.

Fake or altered IDs can be used to unlock discounts that should only go to genuine students. At the same time promotions can be shared and reused in ways that erode their value. A one-off student discount can easily be exploited if a student is able to redeem it multiple times or pass it on to friends and family. This turns what should be a growth driver into a source of loss.

Closing the loophole with real-time verification

This is where InAcademia provides a proactive defence. Our solution verifies student eligibility instantly and securely at the point of redemption. Instead of uploading ID documents or sending sensitive information, students simply log in using their trusted university credentials.

This approach does three things:

• Ensures that only real students can access exclusive offers.
• Protects privacy by not storing any unnecessary data.
• Removes friction from the process so the customer experience stays smooth and intuitive.

InAcademia also makes sure that one-off discounts are used as intended. The system prevents the same student from claiming the same benefit more than once and stops them from using their details to unlock discounts for others.

Safeguarding margins and trust

The Ravelin report highlights that merchants are most concerned about the effect of AI-enabled fraud on brand image, customer loyalty and growth.  If exclusive discounts are repeatedly misused it damages margins and risks eroding trust with genuine customers.

By closing off this loophole businesses can ensure their offers remain a positive experience for the students they are meant for. At the same time, they protect their bottom line and maintain the confidence of their wider customer base.

Looking ahead

AI-fuelled fraud is only going to grow as technology progresses. Businesses that want to build trust and loyalty need to safeguard every step of the customer journey including promotions and discounts.

With InAcademia you can continue to reward genuine students without fear that your offers will be exploited. It offers a privacy-first and seamless way to safeguard margins while ensuring the customer journey remains seamless.

If you would like to learn more about how InAcademia can help protect your student offers, get in touch with us today.