The 2025 Marketplace Risk New York Conference proved that marketplaces and platforms are no longer simply about connecting buyers and sellers. They are about creating safe, trusted environments where commerce can thrive. For trust and safety, compliance, legal, and product professionals, the message was clear: sustainable growth depends on building resilient ecosystems that protect both consumers and businesses.
Throughout the event in New York City, leaders and innovators shared insights on the future of marketplace risk management. The conversations were both aspirational and practical, offering strategies to balance growth with integrity. Three themes stood out: the evolving role of AI in trust and safety, the risks and opportunities from third-party seller growth, and the business case for measuring ROI in trust and safety investments.
Takeaway #1: AI + People is a Winning Combination
Artificial Intelligence is rapidly advancing, but the consensus in New York was clear: AI works best when paired with human expertise. Ginger Bergman, Managing Director of Compliance and Third Party Oversight at Bank of America, captured this perfectly:
“In the current landscape, the best combination of technology is AI with human oversight. AI does the heavy lifting, but in most cases, a person still needs to be there to verify it.”
Bergman emphasized that Know Your Customer (KYC) and Know Your Business (KYB) remain non-negotiable. Compliance has evolved beyond simply checking OFAC or regulatory boxes. It is about building secure ecosystems that rely on strong onboarding and ongoing product reviews.
This perspective was echoed in the LegitScript panel, AI Blind Spots: The Gray Areas of Risk, Policy & Regulation. Tom Cook, Chief Product and Technology Officer at LegitScript, described AI as:
“A well-trained intern. It’s really well read, very intelligent, but needs extensive context to perform its job competently.”
His example illustrated the gray areas perfectly: the San Pedro cactus is a common houseplant but can also be used to produce mescaline, a narcotic. AI might either flag every ad for the plant or none at all. This is where human review ensures context, preventing both over-enforcement and dangerous blind spots.
Takeaway #2: Growth of Third-Party Sellers: Opportunities and Risks
E-commerce platforms are unlocking growth by expanding to third-party sellers, but this comes with heightened risks. Fraudulent merchants, counterfeit products, and compliance violations can erode consumer trust quickly. A panelist summarized it simply: “Product review is the overlooked key to trust.”
Marketplace leaders agreed that merchant onboarding, merchant monitoring, and product monitoring are no longer optional. These are the safeguards that protect consumers while enabling platforms to scale.
Solutions such as LegitScript Merchant Onboarding, Merchant Monitoring, and Transaction Laundering Detection equip marketplaces to:
- Identify and block counterfeit or restricted products.
- Detect transaction laundering before it creates liability.
- Maintain compliance with payment network and acquirer rules.
- Flag suspicious merchant behavior proactively.
For platforms opening their doors to more sellers, these tools are essential to balance growth with consumer trust.
Takeaway #3: ROI for Trust and Safety is a Strategic KPI
One of the most significant shifts at the 2025 Marketplace Risk New York Conference was the recognition of trust and safety growing from compliance cost center to a measurable driver of business performance.
Fraud and abuse create hidden costs that ripple across the business. Chargebacks, regulatory fines, and lost customers who no longer feel safe all add up. Research shows that every dollar of fraud loss costs merchants nearly six dollars in total impact. Preventing fraud is not just risk management. It is profit protection.
Just as important, strong trust and safety programs build loyalty. Customers who feel safe on a platform are more likely to return, spend more, and recommend it to others. Lower churn, higher repeat purchases, and stronger brand reputation all stem from effective monitoring and compliance programs.
The ROI case is simple: the investment in trust and safety pays for itself many times over in savings, protection, and growth. Teams that demonstrate these outcomes gain stronger business cases for resources and innovation. This is why measurable KPIs for fraud prevention, consumer trust, and operational efficiency are no longer optional. They are the metrics that connect safety to growth.
Final Thoughts
The 2025 Marketplace Risk New York Conference underscored a powerful truth: trust and safety is not a back-office compliance function, but a strategic advantage. Platforms that combine AI with human oversight, enforce robust merchant and product monitoring, and demonstrate the ROI of safety will lead the way. For marketplaces, the future of growth depends on building trust and New York was a reminder that this future is already here.
If you’re interested in learning more about how LegitScript’s solutions can benefit your platform, marketplace or payment ecosystem, let’s talk!
