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The Global Fraud Snapshot 2025 draws on extensive research from across the UK, US, EMEA, APAC, and Brazil to uncover how consumer behaviour, technological change, and business strategies are shaping this year’s fraud landscape. Global Fraud Snapshot 2025 Here’s what we found: Fraudsters are exploiting new technologies at unprecedented scale, while consumers demand stronger, more transparent protections. As a result, businesses are caught between defending against increasingly complex attacks and delivering seamless digital experiences. Consumer awareness is high while trust remains low Almost 80% of consumers in the UK and US are aware of online scams, and in Brazil, more than half of consumers report having been victims of fraud. Despite this, confidence is low. Fewer than a third of UK and US consumers believe businesses are transparent about how their data is used, or that they can reliably identify them online. The trust gap is widening, and businesses are under pressure to respond. Security over convenience: what consumers expect Consumers consistently place security above convenience or personalisation in digital experiences. Globally, consumers believe businesses must act decisively to protect their identities and online transactions, and many are willing to share more personal data if it results in stronger safeguards – 76% of UK consumers and 65% of US consumers say they would do so if it improved protection. Biometrics continues to be the most trusted authentication method, signalling the continued expectation for frictionless yet robust security. AI investment priorities in a GenAI-driven fraud landscape For businesses, fraud attack volumes are increasing, driven by the rise in generative AI (GenAI), which is accelerating the creation of synthetic identities, fuelling a surge in identity theft, and enabling more sophisticated authorised push payment (APP) scams. Across every region, AI and machine learning (ML) have moved to the top of the investment agenda to tackle these growing fraud threats, with the UK and US citing GenAI as a key priority for investment in authentication. Both the UK and US are also prioritising the adoption of new analytics methods and the development of new AI models to enhance customer decision-making. In addition, more than half of UK business respondents are targeting investment in the detection and prevention of synthetic identity fraud, while in the US, 63% cite APP fraud prevention as a priority. In EMEA and APAC, the liability shift for APP fraud is accelerating investment in stronger defences. Convergence of fraud, credit risk and anti-money laundering (AML) The snapshot also highlights a structural shift: fraud prevention is no longer a standalone discipline. 65% of businesses in EMEA/APAC and 60% in the UK are now integrating fraud and anti-money laundering (AML) operations. Increasingly, credit risk is being brought into the fold as well, reflecting a broader move toward unified risk management. The convergence of typically siloed functions helps businesses build a more accurate picture of risk exposure - detecting fraud disguised as defaults or chargebacks, identifying credit risk patterns linked to financial crime, and improving overall decisioning across the customer lifecycle. What businesses should do next Closing the trust gap requires bold, strategic action. Businesses must: Invest in AI and advanced analytics to remove false positives and stay ahead of increasingly complex threats. Adopt a multi-layered strategy through fraud orchestration to remove silos and reduce friction while strengthening protection. Integrate fraud, credit risk, and AML functions for a unified view of risk. Prioritise transparency around data use to rebuild consumer confidence. Educate consumers to raise awareness of scams and reinforce trust in digital experiences. Click to read the full Global Fraud Snapshot 2025:

By leveraging insights from leading industry analysts, Experian's expertise, extensive market studies, and market sentiment, we identified four key themes shaping the financial services sector this year. Read now Four themes impacting financial services this year: 1. Fraud evolution driven by AI Tracking synthetic identities is a big challenge for FIs in 2025, exacerbated by fraudsters' use of Gen AI tools to scale activities. Investment in AI is a growing priority as banks seek to strengthen identity verification. Account takeover (ATO) and Authorised Push Payment Fraud (APP) are also growing problems very much linked to advanced AI methods employed by criminals. Collaboration across institutions and the adoption of advanced analytics will be critical in staying ahead of fraudsters. 2. Advanced AI will improve operational efficiencies in new ways GenAI and Agentic AI (an orchestration tool connecting multiple AI models) are unlocking new levels of efficiency and personalisation. The emphasis on adoption is twofold: first, automating steps to accelerate development and delivery, and second, ensuring transparency, compliance, and governance. Businesses need to take an incremental approach to GenAI adoption, with centralised governance and a focus on explainability. AI will improve mid-office processes where internal manual inefficiencies impact downstream customer interactions. 3. Emergence of RegTech to meet complexities of compliance Heightened regulatory scrutiny is driving the adoption of innovative compliance technologies. Adopting cloud-native, modular systems supports more agile compliance strategies and reduces the cost and complexity of updating solutions. Explainable AI is increasingly essential for demonstrating compliance and fostering regulator confidence in automated decision-making. 4. Convergence of risk management The integration of fraud prevention, credit risk assessment, and compliance is a growing trend among financial institutions. Digital identity frameworks and unified data analytics are becoming essential for holistic risk management. Banks need to embrace collaborative approaches and consortium-level partnerships to address interconnected challenges. Read the report

The key themes and emerging trends shaping financial services in 2025, using research and insight from leading industry analysts

Using business and consumer quantitative and qualitative research from the UK, US, Brazil, EMEA, and APAC between 2023 and 2024, we assess the current global impact of fraud. Download now As 2024 draws to a close, businesses face an increasingly hostile environment in the battle against fraud. Driven by rapid technological advancement and evolving regulatory landscapes, organisations seek new ways to prevent and detect highly sophisticated attacks. Experian’s 2024 Global Fraud Report offers a deep dive into the current state of fraud, revealing critical insights and strategies businesses must adopt to stay ahead of fraudsters. Read the report to discover: Why security and customer experience are still in conflict In today’s digital age, businesses face the daunting task of balancing robust fraud prevention with a seamless customer experience. The report highlights that while stringent security measures are essential, unnecessary friction can drive customers away. A multi-layered approach to fraud prevention, integrating advanced technologies with customer-friendly practices, is crucial. The power of data sharing Data sharing has emerged as a powerful tool in the fight against fraud. By collaborating and sharing data across industries, businesses can gain a comprehensive view of fraud patterns and enhance their detection capabilities. Regulatory frameworks in regions like Brazil and the UK increasingly support data-sharing initiatives, which are vital for effective fraud prevention. What the rise in Authorised Push Payment Fraud means for businesses APP fraud has seen a significant rise in some parts of the world due to newly accessible GenAI tools enabling fraudsters to create more convincing scams at scale. Financial institutions are under pressure to implement measures to protect consumers and comply with new regulations that mandate reimbursement for APP fraud victims. How to uncover synthetic identities Synthetic identity fraud is a growing concern. The report reveals that advancements in GenAI have enabled the creation of highly realistic fake identities, making detection more challenging. Businesses need to invest in advanced analytics and alternative data sources to uncover synthetic identities effectively. Why AI and machine learning are critical to fraud prevention AI and machine learning are pivotal in modern fraud prevention strategies. The report underscores the necessity of these technologies in detecting and preventing fraud. AI and machine learning can analyse vast amounts of data to identify patterns and anomalies that may indicate fraudulent activity. Download the report to discover the 5 key takeaways to combat evolving fraud The 2024 Global Fraud Report reinforces the need for businesses to leverage advanced analytics, alternative data insights, data sharing, and a multi-layered approach to combat evolving fraud threats globally. Download report now About the research The 2024 Global Identity and Fraud Report uses the latest research from the United States, the United Kingdom, Brazil, EMEA, and APAC between 2023 and 2024 to examine fraud worldwide. The research provides combined insights globally from over 1,000 businesses and fraud leaders, as well as 4,000 consumers, focusing on fraud management and digital experience. See the report appendix for full details of the research.

Authorised Push Payment fraud is growing, and as regulators begin to take action around the world to try to tackle it, we look at what financial institutions need to focus on now. APP fraud and social engineering scams In recent years, there has been a significant surge in reported instances of Authorized Push Payment Fraud (APP). These crimes, also known as financial scams, wire fraud scams, or social engineering scams in different parts of the world, refer to a type of fraud where criminals trick victims into authorising a payment to an account controlled by the fraud perpetrator for what the victim believes to be genuine goods or services in return for their money. Because the transactions made by the victim are usually done using a real-time payment scheme, they are often irrevocable. Once the fraudster receives the funds, they are quickly transferred through a series of mule accounts and withdrawn, often abroad. Because APP fraud often involves social engineering, it employs some of the oldest tricks in the criminal's book. These scams include tactics such as applying pressure on victims to make quick decisions, or enticing them with too-good-to-be-true schemes and tempting opportunities to make a fortune. Unfortunately, these tricks are also some of the most successful ones, and criminals have used them to their advantage more than ever in recent times. On top of that, with the widespread adoption of real-time payments, victims have the ability to transfer funds quickly and easily, making it much easier for criminals to take advantage of the process. APP Fraud and social engineering scams - cases and losses across the globe: View map Impact of AI on APP fraud Recent advancements in generative artificial intelligence (Gen AI) have accelerated the process used by fraudsters in APP fraud. Criminals use apps like Chat GPT and Bard to create more persuasive messages, or bot functionality offered by Large Language Models (LLMs) to engage their victims into romance scams and the more sophisticated pig butchering scams. Other examples include the use of face swapping apps or audio and video deepfakes that help fraudsters impersonate someone known to their victims, or create a fictitious personality that they believe to be a real person. Additionally, deepfake videos of celebrities have also been commonly used to trick victims into making an authorised transaction and lose substantial amounts of money. Unfortunately, while some of these hoaxes were really difficult to pull off a few years ago, the widespread availability of easy-to-use Gen AI technology tools has resulted in an increased number of attacks. A lot of these scams can be traced back to social media, where the initial communication between the victim and criminal takes place. According to UK Finance, 78% of APP fraud started online during the second half of 2022, and this figure was similar for the first half of 2023 at 77%. Fraudsters also use social media to research their victims which makes these attacks highly personalised due to the availability of data about potential targets. Accessible information often includes facts related to family members, things of personal significance like hobbies or spending habits, information about favourite holiday destinations, political views, or random facts like favourite foods and drink. On top of that, criminals use social media to gather photos and videos of potential targets or their family members that can later be leveraged to generate convincing deepfake content that includes audio, video, or images. These things combined contribute to a new, highly personalised approach to scams than has never been seen before. What regulators are saying around the globe APP fraud mitigation is a complex task that requires collaboration by multiple entities. The UK is by far the most advanced jurisdiction in terms of measures taken to tackle these types of fraud to help protect consumers. Some of the most important legislative changes that the UK’s Payment Systems Regulator (PSR) has proposed or introduced so far include: Mandatory reimbursement of APP scams victims: A world first mandatory reimbursement model will be introduced in 2024 to replace the previous voluntary reimbursement code which has been operational since 2019. 50/50 liability split: All payment firms will be incentivised to take action, with both sending and receiving firms splitting the costs of reimbursement 50:50. Publication of APP scams performance data: The inaugural report was released in October, showing for the first time how well banks and other payment firms performed in tackling APP scams and how they treated those who fell victim. Enhanced information sharing: Improved intelligence-sharing between PSPs so they can improve scam prevention in real time is expected to be implemented in early 2024. Because many of the scams start on social media or in fake advertisements, banks in the UK have made calls for the large tech firms (for example, Google, Facebook) and telcos to be included in the scam reimbursement process. As a first step to offer more protection for customers, in December 2022, the UK Parliament introduced a new Online Safety Bill that intends to make social media companies more responsible for their users’ safety by removing illegal content from their platforms. In November 2023, a world-first agreement to tackle online fraud was reached between the UK government and some of the leading tech companies - Amazon, eBay, Facebook, Google, Instagram, LinkedIn, Match Group, Microsoft, Snapchat, TikTok, X (Twitter) and YouTube. The intended outcome is for people across the UK to be protected from online scams, fake adverts and romance fraud thanks to an increased security measures that include better verification procedures and removal of any fraudulent content from these platforms. Outside of the UK, approaches to protect customers from APP fraud and social engineering scams are present in a few other jurisdictions. In the Netherlands, banks reimburse victims of bank impersonation scams when these are reported to the police and the victim has not been ‘grossly negligent.’ In the US, some banks provide voluntary reimbursement in cases of bank impersonation scams. As of June 2023, payment app Zelle, owned by seven US banks, has started refunding victims of impersonation scams, thus addressing earlier calls for action related to reported scams on the platform. In the EU, with the newly proposed Payment Services Directive (PSD3), issuers will also be liable when a fraudster impersonates a bank’s employee to make the user authenticate the payment (subject to filling in a police report and the payer not acting with gross negligence). In October 2023, the Monetary Authority of Singapore (MAS) proposed a new Shared Responsibility Framework that assigns financial institutions and telcos relevant duties to mitigate phishing scams and calls for payouts to be made to affected scam victims where these duties are breached. While this new proposal only includes unauthorised payments, it is unique because it is the first such official proposal that includes telcos in the reimbursement process. Earlier this year, the National Anti-Scam Centre in Australia, announced the start of an investment scam fusion cell to combat investment scams. The fusion cell includes representatives from banks, telcos, and digital platforms in a coordinated effort to identify methods for disrupting investment scams to minimise scam losses. To add to that, in November 2023, Australian banks announced the introduction of confirmation-of-payee system that is expected to help reduce scams by ensuring customers can confirm they are transferring money to the person they intend to, similarly to what has been done in the UK a few years ago. Finally, over the past few months, more jurisdictions such as Australia, Brazil, the EU and Hong Kong, have announced either proposals or the roll out of fraud data sharing schemes between banks and financial institutions. While not all of these schemes are directly tied to social engineering scams, they could be seen as a first step to tackle scams together with other types of fraud. While many jurisdictions beyond the UK are still in the early stages of the legislative process to protect consumers from scams, there is an expectation that regulatory changes that prove to be successful in the UK could be adopted elsewhere. This should help introduce better tracking of the problem, to stimulate collaboration between financial insitutions, and add visibility of financial instituitions efforts to prevent these types of fraud. As more countries introduce new regulations and more financial institutions start monitoring their systems for scams occurrences, the industry should be able to achieve greater success in protecting consumers and mitigating APP fraud and social engineering scams. How financial institutions can prevent APP fraud Changing regulations have initiated the first liability shifts towards financial institutions when it comes to APP fraud, making fraud prevention measures a greater area of concern for many leaders in the industry. Now the responsibility is spreading across both the sending and receiving payment provider, they also need to improve monitoring for incoming payments. What’s more, as these types of fraud are a global phenomenon, financial institutions from multiple jurisdictions might consider taking greater fraud prevention steps early on (before regulators impose any mandatory rules) to keep their customers safe and their reputation high. Here are five ways businesses can keep customers safe, while retaining brand reputation: Advanced analytics – advanced data analytics capabilities to create a 360° of individuals and their behaviour across all connected current accounts. This supports more sophisticated and effective fraud risk analysis that goes beyond a single transaction. Combining it with a view of fraudulent behaviours beyond the payment institution's premises by adding the ability to ingest data from multiple sources and develop models at scale allows businesses to monitor new fraud patterns and evolving threats. Behavioural biometrics – used to provide insights on indicators such as active mobile phone calls, session length, segmented typing, hesitation, and displacement to detect if the sender is receiving instructions over the phone or if they show unusual behaviour during the time of the transaction. Transaction monitoring and anomaly detection – required to monitor sudden spikes in transaction activity that are unusual for the sender of the funds as well as mule account activity on the receiving bank’s end. Fraud data sharing capabilities – sharing of fraud data across multiple organisations can help identify and stop risky transactions early, in addition to mitigation of mule activity and fraudulent new accounts opening. Monitoring of newly opened accounts – used to detect fake accounts or newly opened mule accounts. By leveraging a combination of these capabilities, financial institutions will be better prepared to cope with new regulations and support their customers in APP fraud. Identity & Fraud Report 2023 US Identity & Fraud Report 2023 UK Defeating Fraud Report 2023 EMEA & APAC

Experian ranked #1 in Juniper Online Payment Fraud Competitor Leaderboard January 2022 Juniper Digital Identity: Market Forecasts, Key Opportunities & Regulatory Landscape 2022-2026 June 2021 KuppingerCole Leadership Compass: Fraud Reduction Intelligence Platforms May 2021 Celent: Experian Verify - Real Time Customer Verifications Accelerate Loan Origination April 2021 Juniper: Online Payment Fraud Emerging Threats • Segment Analysis • Market Forecasts • 2021-2025 April 2021 Juniper: Online Payment Fraud Deep Dive Strategy & Competition February 2020 Juniper: Online Payment Fraud Emerging Threats • Segment Analysis • Market Forecasts • 2020-2024

Insights from the 2022 Global Identity & Fraud report Building digital consumer trust amidst rising fraud activity and concerns The survey underpinning the insights in our 2022 Global Identity & Fraud report encompasses 1,849 business respondents and 6,062 consumers from 20 countries, including Australia, Brazil, China, Chile, Colombia, Denmark, Germany, India, Indonesia, Ireland, Italy, Malaysia, The Netherlands, Norway, Peru, Singapore, South Africa, Spain, UK, and US. We’ve also included interviews with consumers from Brazil, Germany, the UK, and US.    Insights from the video: The emergence of a digitally savvy consumer with a heightened awareness of fraud, and trusts brands to protect them online Consumers expect to increase their online activity in the next 3 months Consumers have higher expectations of the online experience Businesses are investing in multiple digital initiatives to meet consumer expectations, but the fraud risk persists More than half of consumers surveyed globally have been a victim of fraud or know someone who has 70% of businesses say their concern about fraud has increased since last year Only 30% of consumers are confident that businesses will recognise them repeatedly online, even though 84% of businesses say recognising customers is very or extremely important Consumers rank security as the top factor in their online experience and are actively seeking out businesses to provide it Read the report to discover 5 tips on how to increase the value of your customer's experience and reduce fraud risk   Stay in the know with our latest research and insights:

Building digital consumer trust amidst rising fraud activity and concerns Our latest report dives into the growing expectation that businesses recognise and protect consumers online, and the challenges businesses must overcome to succeed in building digital consumer trust. In recent years, our annual report has called on businesses to meet consumer expectations for online recognition and security while also improving their digital customer experience. Our latest research reveals that companies have received the message and are investing in multiple digital initiatives. But the fraud risk persists. 70% of businesses say that their concern about fraud has increased since last year. So where is the disconnect? A look inside this year's report: Digital financial transactions have become the norm in recent years leading to the emergence of a movement of savvy consumers with a heightened awareness of fraud and the role recognition and security tools play in protecting them online. We found that more than half of consumers surveyed globally have been a victim of fraud or know someone who has. Despite these concerns, most consumers say their online activity will increase in the next 3 months. What are consumers looking for from businesses? Consumers globally value security in their online experience above other factors. The research reveals how consumers are actively seeking out businesses that they perceive to be secure, and what this looks like to them. Read the report to find out: • How online security yields engagement and trust with today’s digital consumers • The role of businesses in protecting online consumers and the benefits of doing so • The current opportunity for businesses to implement multiple identity and fraud solutions • The role that orchestration and outsourcing play in helping companies prevent fraud We discovered there is still a significant gap between consumer sentiment and business intentions related to identity recognition. Only 30% of consumers are confident that businesses will recognize them repeatedly online, even though 84% of businesses say recognising customers is very or extremely important. What leads to success? Financial service organisations need to find ways to create more online security while improving the digital customer journey. Experian’s identity and fraud experts also offer 5 tips for strengthening digital capabilities to benefit the customer experience and reduce fraud risk. The survey underpinning these insights encompasses 1,849 business respondents and 6,062 consumers from 20 countries, including Australia, Brazil, China, Chile, Colombia, Denmark, Germany, India, Indonesia, Ireland, Italy, Malaysia, The Netherlands, Norway, Peru, Singapore, South Africa, Spain, UK, and US. We’ve also included interviews with consumers from Brazil, Germany, the UK, and US.

Mike Gross, VP of Applied Fraud Research & Analytics, takes a look at the seven top global fraud predictions for 2022. A new wave of deep fake synthetic identity fraud Fraud-as-a-Service is just a click away Real-time payments = faster fraud Fintech growth comes at a cost The two-fold reality of ransomware attacks Supply chain issues expand marketplace scams Digital identity’s convergence of identity verification and fraud detection Digital acceleration is transforming the way financial services providers connect with consumers. The rise of Fintechs, cryptocurrency, and embedded finance options from alternative lenders has changed the face of the financial services industry, and a secure but seamless customer experience has become the gold standard for businesses. Driving this demand is consumers, led firstly by a natural shift towards digital encouraged by disrupter technology providers and their easy-to-use products, and secondly by the pandemic-induced online boom. But with these changes come opportunities. And not always positive ones. As businesses grapple with how to keep up with digital demand from consumers, they are also dealing with an evolving fraud landscape, with online payment fraud losses alone set to exceed $206 billion between 2021 and 2025*. Fortunately, advancements in fraud detection and prevention methods have also accelerated, with machine learning and AI enabling businesses to keep pace with rapidly evolving fraudsters. But how have such rapid changes in the industry impacted criminal activity in this space? We look at seven key global fraud predictions for 2022. A new wave of deep fake synthetic identity fraud 2021 has seen a surge in deep fake identity fraud, and that looks set to continue. The development of AI to impersonate consumers’ voices and faces is becoming more prevalent, making it challenging for businesses to verify and authenticate identities. With recent advances in deep fake technology, fraudsters can leverage compromised identity data to bypass verification controls, and then either create new synthetic profiles with documents, facial images, and voice cloning to bypass identity authentication requirements for secure exchanges like government benefits sign ups. These deep fake tactics can impact businesses’ ability to recognize consumers across the entire lifecycle, but particularly at the point of enrolment and authentication. Detection and prevention of deep fake identity fraud involves applying a layered strategy of technical defenses along with a vigilant approach. Requiring identity data or documents in isolation is not sufficient. Organizations need to fight fire with fire by capturing digital and behavioral data to complement identity controls, then using AI and machine learning to analyze interactions and spot fraud. Fraud-as-a-Service is just a click away The use of automated bots by fraudsters to impersonate businesses and socially engineer their customers is also growing rapidly. As fraud controls become even more effective at thwarting traditional attacks, fraudsters see an opportunity to evolve their tactics and capitalize on advances in voice bots. In 2022 and beyond, a large portion of fraudulent transactions will be submitted by legitimate consumers who are being socially engineered to not only provide data, but to use their own devices to submit what they believe are legitimate transactions. Banks globally are already witnessing the start of this trend, as fraudsters can now purchase bots to contact consumers, impersonate their banks, retrieve one-time passwords, and forward those codes to fraudsters to complete fraudulent transactions. Historically, fraudsters couldn’t scale this type of attack to manage thousands of calls to consumer victims, but now they can just hire a bot that sounds and acts just like a bank reaching out to their customers. As a result of this success and the cost effectiveness of bots, fraudsters are expanding operations to impersonate every type of business, from retailers to government organizations. Real-time payments = faster fraud Faster money often means faster fraud. Real-time payments (RTP) increased by 41% between 2019 and 2020 and are set to rise again by 23% between 2020 and 2025*. From mobile payments all the way to Buy Now Pay Later, RTPs have provided ample opportunity for fraudsters to quickly monetize and cash-out – converting money to other forms of currency like crypto and then laundering the funds through multiple fraudulently-established accounts. The lack of regulation in cryptocurrency makes it an especially attractive target for fraudulent activity because attackers can more easily remain anonymous and funnel funds across currencies in mere seconds. Crypto exchange platforms have profited from the unregulated environment but are starting to pay the price when it comes to fraud losses. The speed of real-time payments presents unique challenges to businesses because they often can’t be revoked or easily traced, so detection can be more difficult. But the demand for RTP is only increasing, so consistent regulations need to be in place and organizations must be able to accurately verify and authenticate identities and transactions across channels in seconds to detect criminals preying on these faster payment methods. Fintech growth comes at a cost Buy Now Pay Later has exploded over the last year. Alternative lenders now dominate the retail landscape, embedding themselves in customer journeys, offering consumers fast and easy credit, and minimizing fraud liability for merchants. But these disruptive businesses offering tailored financial products based on vast amounts of customer data have the potential to leave the door wide open to criminals. A frictionless customer experience and easy-to-use technology has allowed these nimble businesses to attract millions of customers, and with it, huge volumes of fraud. According to Aite-Novarica Group, Fintechs have an average fraud rate of around 0.30%, which is double that of credit cards that average 0.15-0.20%. 2022 is likely the year that Fintechs put risk at the forefront of strategy. Without the right identity and fraud protections in place across their websites and apps, they not only risk fraud losses, but they could also damage brand reputation. And without quick, comprehensive fraud reporting back to the businesses they serve, they also risk enabling even more downstream fraud attacks. The two-fold reality of ransomware attacks As businesses experience extortion in the form of weaponized malware, the sophisticated nature of AI used in ransomware attacks is rapidly evolving, allowing attackers to be even more successful at extracting data and wreaking havoc. A business’s data is the primary commodity that the fraudsters use to negotiate ransom payments, but the stolen data of that business’s customers is often forgotten, which can be an even greater concern. This growth in ransomware and the availability of sensitive consumer and business data will not only drive attacks in 2022. It will likely change the nature and depth of those frauds using newly-available data such as business financials or consumer medical conditions or employment details in more pervasive attacks. Organizations falling victim to ransomware must understand all of the data that has been compromised and should notify its customers so they can take steps to prevent future identity or other fraud attacks. Supply chain issues expand marketplace scams We expect to see more issues with marketplace fraud as supply chain issues and inflation persist through 2022. Where there are supply gaps, fraudsters will meet the pent-up demand with products that don’t exist, scamming customers to part with money for nothing in return. In the current marketplace environment, it’s easy to set up a fake business with positive reviews. And because consumers have no way to verify the authenticity of a business, they roll the dice on what seems too-good-to-be-true, lose money, and then try to recoup funds from their financial provider. This is another area where BNPL providers will end up bearing responsibility for a lot of retail fraud in 2022, as they take on liability for the fraud and credit losses that fueled their rapid growth. Digital identity’s convergence of identity verification and fraud detection Password-free experiences led by the ubiquitous smartphone and the ability to make real-time payments has resulted in a demand for a seamless, uninterrupted customer journey. But central to all of this is identity authentication. As identity verification and fraud detection continue to converge, the big question is, how can a secure, consumer-friendly approach to digital identity be adopted and regulated, and by whom? The announcement of the European Digital Identity scheme shows that governments are beginning to move in this direction, but there is still a long way to go. As authentication and onboarding systems continue to be targeted by fraudsters, the bid to create secure, reusable digital identities to enable more seamless commerce and to mitigate fraud and criminal activity becomes more critical. This is a concept that is dominating the conversation and one that we expect to play a big role in fraud prevention in 2022 and beyond. *Juniper Research Stay in the know with our latest research and insights:

Fraud threats continue to rise across the globe as consumers are spending record amounts of time online due to the pandemic. At the same time, emerging threats of fraud are growing, as fraudsters are taking advantage of the globally shifting economic conditions. Fraud prevention remains a top concern for both consumers and businesses alike. Anticipating future fraud risk is critical and companies are adopting more complex technology systems to ensure consumers’ financial safety. To provide a safe and convenient experience, businesses need to take a customer-first approach when evaluating the latest technology and solutions available to them. To ensure they are providing secure online experiences, businesses are turning to verification strategies using data technology and other detection methods. In fact, according to this year’s Global Identity and Fraud Report, customer recognition security strategies have become the new norm for businesses with 82 percent of companies saying they now have one in place, a 26 percent increase since the start of the pandemic. An independent research firm headquartered in Germany, KuppingerCole Analysts, released a report, Leadership Compass: Fraud Reduction Intelligence Platforms, that provides an overview of the market segment, vendor service functionality, prevention measures and innovative solutions to fraud. The report cites Experian as an overall leader, product leader, innovation leader, market leader and technology leader in fraud reduction intelligence platforms. Experian is also credited for taking a client-oriented upgrade approach and delivering other cutting-edge features while maintaining compatibility with our older platform releases. We also scored a strong positive for interoperability, usability, deployment, innovativeness, market position, financial strength and ecosystem; and a positive in security and functionality. We pride ourselves in our digital identity protection services and consumer safety, taking proactive approaches to fraud prevention and providing businesses with the necessary tools to identify risks of fraud. The report discusses fraud prevention measures and innovative solutions to fraud. According to the report, cybercrime costs will reach $10.5 trillion by 2025. The report evaluated 15 different data security and fraud prevention platforms and ranked their products, innovation, market positioning and technology in their report. All of Experian’s fraud detection and prevention services are available through our CrossCore® partner ecosystem. By combining advanced analytics, rich data assets, identity insights and fraud prevention capabilities, businesses can connect any new or existing tools and systems in one place, whether it be Experian’s, Experian’s partners or its own. With its built-in strategy design and enhanced workflow, fraud and compliance teams have more control to quickly adjust strategies based on evolving threats and business needs, which helps to improve efficiency and reduce operational costs. Learn more about the CrossCore platform.   Stay in the know with our latest research and insights:

Fraud has been exacerbated by the Covid pandemic, and with total cybercrime costs set to reach $10.5 trillion by 2025 according to Cybersecurity Ventures*, many businesses are looking to protect themselves and their customers from fraudsters. As the world moves further towards digital interactions across services and eCommerce, new fraud targets are emerging, and although financial services are more accustomed to these attacks compared with new targets, they are still favorites among the criminals. KuppingerCole's Leadership Compass report on fraud reduction intelligence platforms, highlights Experian as a leader across product, innovation and market. *Cybersercurity Ventures