An in-depth look at AI and other disruptive trends and technologies shaping the fraud landscape
Fraud is a pervasive and evolving threat that impacts individuals, businesses, and governments worldwide. The financial losses are substantial, but the damage extends beyond monetary loss, affecting trust, reputation, and operational stability. According to some estimates, the cumulative merchant losses to online payment fraud globally between 2023 and 2027 will exceed $343 billion, reflecting both the scale of the problem and the urgent need for effective fraud detection and prevention strategies. To combat fraud, firms are expected to spend over $250 billion by 2031, up from $45 billion today.
Advanced technologies like artificial intelligence and machine learning are crucial in detecting and preventing fraud. By processing data in real-time, these technologies can identify patterns and anomalies indicative of fraud, such as hidden correlations in transaction data or communication patterns suggesting phishing. In the Fraud Exposed, we’ll explore:
- The evolution of fraud: Technological progress and evolving financial systems have caused significant shifts in everything from traditional physical fraud to advanced cybercrime. This section will briefly cover significant milestones and shifts in fraud tactics over the decades.
- Current trends and challenges: Generative AI (GenAI) is playing a dual role in both enabling and combating fraud. Unfortunately for financial institutions and technology firms, fraudsters are often the first to leverage new technologies.
- The future of fraud prevention: The future of fraud prevention lies in a holistic approach that integrates multiple layers of defense, leveraging technology, enhancing employee training, and fostering collaboration across different sectors and industries.
Click here to read the full report and get a detailed analysis of the methods used by fraudsters, the role of emerging technologies like GenAI, and the importance of robust regulatory frameworks.
