Tag: Identity & Fraud

In 2025, financial institutions grappled with acceleration - faster digital journeys, faster fraud, and faster AI adoption. As we go into 2026, the challenge has shifted. Speed is no longer the differentiator. Instead, control, confidence, and accountability are driving investment. Experian’s Global Insights 2026: Predictions for credit and fraud risk explores how organisations are responding to rapid change by moving from experimental innovation to accountable intelligence that is connected, governed and trusted at scale. Grounded in analyst insight, Experian research, and market signals, the report identifies seven shifts that will define the year ahead. Download report 1. Making AI deliver through accountability and governance The optimism that fuelled generative AI (GenAI) adoption throughout 2024 and 2025 has evolved into a more disciplined focus on performance, return on investment, and operational integrity. In 2026, organisations are no longer asking what AI can do; they are asking whether it delivers measurable value, integrates safely into core workflows, and can be governed with confidence. For many organisations, this reality check has already arrived. AI that cannot demonstrate value or withstand governance scrutiny will struggle to scale. 2.The agentic ecosystem transforms enterprise automation Early agentic AI deployments show promise in automating tasks and accelerating workflows. But as adoption grows, so does complexity. In 2026, organisations will focus less on individual agents and more on how agents are orchestrated, governed and integrated. Agent frameworks will become commonplace, but differentiation will come from platforms that can orchestrate data, enforce policy and maintain consistency across every automated workflow. 3. Fraud and identity risks intensify, demanding layered, intelligent orchestration Consumers are increasingly relying on AI tools to guide financial decisions, marking the early stages of AI-mediated customer journeys. Fraudsters are already exploiting the gaps created as AI and automation accelerate. In 2026, identifying who (or what) is on the other side of a digital interaction is becoming harder. GenAI has rendered voice authentication unreliable through advanced voice cloning, while deepfake videos undermine visual trust. Autonomous AI agents are beginning to act on behalf of humans in everyday transactions, often indistinguishable from malicious bots. In this environment, traditional identity checks simply cannot keep pace. Identity verification must evolve from static checks to continuous, contextual validation. 4. Quality and connectivity of data define intelligent credit AI is only as effective as the data that powers it. In 2026, data quality, lineage and governance take centre stage. Businesses building explainable AI require reliable, well-structured data that can be traced, audited, and updated in real-time. The ability to orchestrate all data sources within a single, high-quality ecosystem will determine the success of every credit and fraud decision. In an AI-driven world, data quality and integration are the most powerful levers of performance and trust. 5. Credit, fraud and compliance converge into unified intelligence Historically separate risk functions are now converging as financial institutions pursue consistent decisions, lower operating costs and stronger governance. This shift is driven by both regulatory pressure and operational necessity. By breaking down silos, financial institutions can not only strengthen risk management but also unlock better financial opportunities for their customers, creating a more secure and seamless ecosystem. 6. Partnerships and integration drive growth In 2026, platform strategy becomes inseparable from partnership strategy. No lender can access every data source or defend against every threat alone. The winning model is collaborative, modular and interoperable. Businesses are recognising that partnerships are no longer optional; they define coverage, scalability and the ability to participate in agent-enabled ecosystems where identity, data and payment layers work together seamlessly. 7. The credit lifecycle becomes frictionless and human-verified The credit lifecycle is evolving in response to shifting consumer behaviour and rapidly changing technology, becoming both automated and human-centred. In 2026, this evolution begins to take shape through customer journeys, where identity is continuously verified, fraud controls adapt in real time, decisions are explainable, and consumers experience interactions that feel both effortless and trustworthy. The capabilities that will drive success in 2026 As 2026 unfolds, organisations face an environment defined by accountable AI, converging risk functions, rising fraud threats, and the emergence of agent-driven ecosystems. Success will depend on the ability to seamlessly orchestrate data, identity and intelligence, while keeping people at the centre of oversight and accountability. Download the full Global Insights 2026: Predictions for credit and fraud risk report

Identity verification (IDV) is evolving from a gating function at onboarding into an adaptive capability that underwrites digital trust across every interaction. In today’s digital world, identity has become the new battleground. Fraudsters are no longer just exploiting payments or accounts; they’re infiltrating identities by layering synthetic profiles, spoofing biometrics, and launching AI-driven deception. For organisations that depend on consumer trust, the question is no longer whether to double down on identity verification, but how to do so in a way that preserves customer experience, supports regulatory compliance, and scales effectively. But how can organisations prepare for this complex set of challenges? To answer that, we examine what industry experts say is required in today’s environment. Experian has been named as a Leader in the IDC MarketScape: Worldwide Identity Verification Financial Services 2025 Vendor Assessment (doc # US52985325, September 2025). The report evaluates vendors on the depth and breadth of their identity verification capabilities and on how effectively they align with current and future customer needs. Read the excerpt IDV must evolve from a gateway to a trust layer For many years, IDV has been a hurdle to face at onboarding. Prove who you are, then proceed. But that paradigm is no longer fit for purpose: Fraud is identity-first. Attacks now are focused on synthetic identity, identity layering, account takeover, and sophisticated imitation. 72% of US business leaders expect AI-generated fraud and deepfakes to be major challenges by 2026. Experian’s 2025 US ID & Fraud Report User expectations and trust sensitivity are rising. Consumers abandon flows when verification feels arbitrary, opaque, or overly burdensome. 40% of US consumers and nearly 30% of UK consumers have considered abandoning a new account setup. Experian Global Fraud Snapshot 2025 Regulatory, audit, and governance pressures are intensifying. Digital ID trust frameworks, privacy regulations, and auditability demands mean that IDV must be auditable, explainable, and modular. Identity is a living construct. People move, change, re-register, and identity data degrades over time, so fraudsters have the opportunity repurpose credentials. Static identity checks become stale - IDV must be woven into ongoing interactions, not just at the starting point. Agentic AI is redefining trust. As humans are increasingly removed from decision loops, IDV frameworks must adapt to ensure integrity in autonomous interactions. New protocols will be needed to extend identity verification into the trust and authorisation requirements of the Human-to-Agent (H2A) environment. IDV must no longer be a checkpoint but a core pillar on which other functions (fraud, KYC, onboarding, collections) lean. How to support continual trust across the full lifecycle Layered, multi-modal signal orchestrationDocument verification, biometrics, device intelligence, behavioural analytics, and external identity attributes are now baseline elements. What differentiates is how these signals are orchestrated: when to escalate, when to fallback, and how dynamically they interact in varying risk scenarios. Orchestration solutions must now extend beyond the technical integration of multiple services to incorporate an intelligence layer that interprets all signals to derive the best outcome for each event. Risk-adaptive trust scoringBinary checks (pass/fail) create either friction or exposure. Businesses need adaptive trust scores that allow for light touch for low-risk journeys and stronger verification for unusual or high-risk interactions. Continuous monitoring & reverificationIdentity is not static. Behaviour drifts, credential changes, and devices often alternate, all of which require ongoing scrutiny. Systems must detect anomalies and trigger re-verification where necessary, embedding verification into usage, recovery, and even offboarding stages. Auditability, explainability & governanceDecisions in identity systems increasingly draw regulatory, audit, and compliance scrutiny. Transparency, decision explainability, and audit trails are vital. For enterprises, this means every verification result should be justifiable, traceable, and defensible. Interoperability & trust networksSiloed identity systems are declining. The future lies in credential attestation, federated identity, and interoperable trust networks. Readiness to support these trust frameworks through integration is key. Resilience to AI-driven identity attacksGenerative AI and synthetic identity tactics stress-test traditional identity checks. To counter these threats, systems now require liveness detection, cross-signal consistency, anomaly detection, and defences against deepfakes. New dynamics shaping identity verification“Not only are solutions more intelligent, but the level of ease with which they can be implemented and flexibly adapted has improved. What was previously a drawn-out process of customization is now facilitated by low-code configuration, AI-backed recommendations, and modular plug-ins.”IDC MarketScape: Worldwide Identity Verification Financial Services 2025 Vendor Assessment (doc # US52985325, September 2025) The IDC MarketScape shares market insights The IDC MarketScape: Worldwide Identity Verification Financial Services 2025 Vendor Assessment reflects the core concerns of organisations investing in identity, fraud, and onboarding capabilities. The study noted the following strengths for Experian: Access to a broad and diverse range of proprietary identity and credit data sources enables multi-layered verification across different financial services use cases. The platform incorporates risk-based authentication, progressive onboarding and behavioural analytics that enable fraud detection with reduced friction. NeuroID integration expands capabilities in behavioural monitoring, including detection of fraud rings and bot behaviour during digital onboarding. Read the IDC MarketScape: Worldwide Identity Verification Financial Services 2025 Vendor Assessment excerpt Learn more about Experian’s fraud solutions

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:

Moving into the agentic era of fraud and credit risk decisioning In the next five years, underwriting will change more than it has in the past two decades. That’s the clear message from Experian’s latest global study. Based on research with more than 700 senior decision-makers across 10 countries and over 70 expert interviews. The findings point to an underwriting future that is more automated, contextual, and seamlessly embedded into customer journeys. But while technology is the enabler, the driving force is the consumer. Download report Consumers want more, and technology is heightening expectations Today’s consumers want credit experiences that are faster, more transparent, and tailored to their real financial lives. Over 40% of respondents told us that a frictionless borrowing experience is now the top priority for consumers, especially younger generations. They’re no longer willing to tolerate difficult journeys, unclear terms, or long waits for a decision. This means underwriting can no longer remain a back-office function. It must become a front-line service that operates in real time, embedded within digital channels. Already, 83% of industry leaders expect lending to become an embedded part of commercial transactions, not a standalone product. Technology is transforming how risk is assessed Automation and AI are changing how we assess risk and make decisions. But crucially, most experts do not expect AI to fully replace human underwriters. Instead, AI is seen as an enabling tool, handling lower-ticket cases at scale, while humans remain essential in high-value or complex decisions. What is changing is the scale and speed. By 2030, decisions will increasingly be powered by agentic AI – digital agents that act on behalf of customers to compare products, submit applications, and verify identity. This will radically simplify the journey but will also mean that businesses must rethink how they secure trust and verify identity in a world of invisible interactions. Alternative data is essential, but orchestration is the key More data is available now than ever before, but access alone is not enough. The winners in 2030 will be those who can orchestrate data in real time, from traditional credit files to behavioural, open banking, and synthetic sources, to build a holistic, explainable view of each customer. In fact, 80% of respondents expect to rely more on alternative data than traditional sources by the end of the decade. This shift will improve credit inclusion and model precision, but also demands investment in platforms that can ingest and manage data with full transparency. Fraud is not going away As underwriting becomes more seamless, the traditional touchpoints for fraud detection start to disappear. In low-friction journeys, fraud doesn’t vanish; it hides. That’s why 94% of leaders told us that cybersecurity and fraud prevention will remain a top priority into the next decade. Trust will need to be embedded into the journey with dynamic risk signals, behavioural biometrics, and AI-based identity verification working in the background to spot anomalies and synthetic profiles. Risk and fraud functions, once siloed, are now converging. What should businesses do now? The insight from this research is clear: businesses must evolve their approach to underwriting to better tackle a rapidly evolving environment. Here are the five priorities to focus on now: Invest in orchestration: Data access alone isn’t enough. Tools must connect, validate, and use alternative, behavioural and consented data in real time. Embed trust: Adopt continuous risk monitoring, robust digital identity, and explainable models to ensure fraud is detected and decisions remain accountable. Ensure platform-readiness : Cloud-native, API-first architecture will be essential for agility, scalability and compliance. Rethink human contribution: The role of the underwriter will shift from manual decision-making to exception handling, oversight, and governance. Train staff for exception handling, oversight, and governance, not manual processing. Adopt a partnership mindset: Success will depend on building and managing high-performing ecosystems and leveraging trusted partners for infrastructure, insights, and innovation. Want to lead in 2030? Download report

The credit landscape is undergoing a seismic shift.  Consumers expect seamless, lightning-fast digital experiences, but financial institutions must also contend with rising fraud risks and intensifying regulatory pressure. Incremental tweaks won’t cut it – modern lending demands a radical rethink.  In an era defined by AI, automation and data-driven insights, lenders have a unique opportunity: to transform credit operations from rigid and reaction, to agile, intelligent and scalable.   When presenting our research, I’m often challenged to provide evidence of companies that have made this move and embraced this shift, not just to survive, but to lead. “What benefits did they actually see – in dollars and cents?” It’s a fair question, especially when the stakes are high and the path forward can seem uncertain.   To answer it, Experian commissioned Forrester Consulting to conduct a Total Economic Impact™ study on the impact of Experian Ascend Platform with organisations that have made this move. The findings showcase how lending institutions are leveraging advanced analytics and automation to enhance credit operations, reduce fraud, and accelerate business growth.  Download now The need for accurate and efficient credit operations has never been greater The challenges financial institutions face today: Manual, slow credit decisioning: Lengthy approval processes limit scalability and impact customer satisfaction. Lack of up-to-date data: On-premises environments can prevent accurate up-to-date data. Static scorecards and manual checks happen after the fact. Inconsistent underwriting decisions: Manual assessments introduce bias and inefficiencies. Rising fraud risks: The financial ecosystem faces increasing fraud threats that require real-time detection. Market volatility: Institutions must adapt faster to economic changes and regulatory requirements. Key findings from Forrester Total Economic Impact™ of Experian Ascend Platform Forrester’s independent research provides quantifiable insights into the financial impact of Experian Ascend Platform. The results are based on a composite organisation representative of interviewed customers over three years. 183% ROI with a $13.3M Net Present Value (NPV) 12-month payback period 12% improvement in approval rates over three years 5% year-over-year in new revenue from additional applications 67% efficiency gains in credit decisioning 20% reduction in default costs These numbers show institutions investing in Experian Ascend Platform see rapid, measurable returns. Real-world impact: How businesses are benefiting In addition to the data, the study includes real customer successes across industries: Car leasing company: Increased approval rates from 60% to 66%, leading to better risk management and higher conversion rates. Global airline: Reduced fraud chargebacks by 99.9% (from 6,660 cases per year to just 4), preventing financial losses and reputational damage. Fintech lender: Reduced model development time from months to days, improving agility in risk assessment. These organisations transformed their operations by replacing legacy systems with cloud-based, automation and advanced analytics that deliver real-time insights and consistent, scalable decision-making. "Experian Ascend Platform is driving revenue because more business is being accepted on an automated basis. It’s taking the decision away from the underwriters - making decisioning more consistent - and we are seeing less revenue erosion through successful fraud reporting."Credit Manager, Car Leasing How the Forrester Total Economic Impact™ study can help your business Financial leaders can use the Forrester Total Economic Impact™ of Experian Ascend Platform as a strategic decision-making tool to: Explore ROI potential: Start with the specific areas your business could benefit from using the Experian Ascend Platform, such as operational efficiency, faster decisions, or marketing effectiveness. Build a business case that resonates: Back your investment with proven results. Use real-world success metrics from organisations like yours to shape a compelling, data-driven case. Uncover new growth opportunities: Think beyond cost savings and efficiency gains. With automation and advanced analytics, there’s real potential to expand your portfolio, enter new markets, and deepen customer engagement. Mitigate risk with confidence: See how other businesses have successfully reduced fraud, defaults, and compliance risk. This study provides a data-driven framework to help financial institutions understand the value added to their business. Download the full Forrester Total Economic Impact™ of Experian Ascend Platform study to explore the potential financial impact on your business.

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

Experian's new global report is now available on how businesses can enhance efficiency, insights, and growth through integration to transform the future of risk strategy. Download report In the ever-evolving financial landscape, the convergence of credit risk, fraud risk, and compliance is becoming a game-changer. Financial institutions (FIs) increasingly recognise the need to integrate these functions to enhance efficiency, gain deeper insights, and drive growth. The 2024 global report on the convergence of credit, fraud, and compliance sheds light on this critical transformation, emphasising how a unified strategy can revolutionise risk management. The report highlights the importance of convergence in shaping the future of financial services. We surveyed 750 leaders in credit risk, fraud risk and compliance in financial services organisations across the world. Inside the report: The need for convergence As technology advances, financial institutions (FIs) face the dual challenge of managing complex systems while simplifying consumer processes. The report reveals that organisations use an average of eight tools across credit, fraud, and compliance, with some using more than ten. This fragmentation leads to inefficiencies and increased risks.In addition, 79% of respondents want to work with fewer vendors to manage credit risk, fraud, and compliance, underscoring the need for streamlined operations. Independent evolution of functions and associated challenges Credit risk, fraud risk, and compliance functions have evolved independently, creating operational silos and technology management challenges. This separation has led to increased fraud and credit losses. The report highlights that only 9% of organisations prioritise these functions equally, with most focusing on fraud. However, 87% of respondents acknowledge the overlap between these areas and are working towards closer collaboration. Regulatory pressures and advanced fraud techniques New regulations in the US, UK, and EU are compelling FIs to reimburse consumers for losses due to scams, increasing the liability for both sending and receiving banks. Penalties for failing to implement effective Anti-Money Laundering (AML) solutions have also intensified. These regulatory demands and advanced fraud techniques necessitate a more integrated approach to risk management. Early stages of convergence While the market is beginning to recognise the benefits of convergence, many FIs are still in the early stages of this journey. The convergence speed varies, but mature organisations have already started or plan to start the process soon. The report shows that 91% of respondents believe that forward-looking companies will centralise these functions within the next three years. However, only 15% prefer a 'point solution', 36% prefer a single integrated solution, and 49% prefer modular integration. The role of technology Technology plays a crucial role in integrating functions and managing risk. Next-generation platforms are essential for adapting to market needs, delivering innovative products, and meeting regulatory requirements. The report emphasises the importance of data aggregation, which combines diverse data for deeper insights, and the integration of credit decisioning and fraud detection solutions to balance risk and growth goals simultaneously. Improving risk management through alignment Correctly identifying consumers, managing fraud risk, making informed credit decisions, and ensuring compliance share common ground. The report shows that 57% of respondents believe aligning credit risk, fraud, and compliance functions leads to better overall risk management. Businesses with more centralised practices report improved risk management effectiveness, operational efficiencies, and data integrity. Benefits of convergence The convergence of credit risk, fraud, and compliance offers numerous benefits, including: Improved risk management effectiveness: Better alignment leads to more effective risk management strategies. Operational efficiencies: Streamlined processes and reduced duplication of efforts enhance operational efficiency. Increased data integrity: Centralised data management ensures consistency and accuracy. Cost reduction: Consolidation of functions and technology reduces costs. Enhanced customer experience: A unified approach improves customer recognition and service across all channels. Read the report to find out how to prove value through integration. Download report

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.

Download eBook How to deploy a multi-layered approach with a holistic view of the consumer to stay ahead of evolving fraud. Find out how to mitigate against GenAI-enhanced fraud by downloading the eBook GenAI's rise to the top has been rapid. It was only last year that GenAI fully emerged in the public domain as an accessible tool, with the technology's impact and expectations reverberating across businesses worldwide. This massive growth trajectory has led some critics to suggest that GenAI is nearing its hype peak. However, its potential is still unfolding as the technology continues to evolve and be applied to new use cases. Although its positive applications have enormous potential, the technology also poses many risks. In the fraud space, GenAI poses two main threats: The scaling and personalisation of attacks. Criminals today are generating synthetic content with a goal of decieving businesses and individuals. Fraudsters leverage GenAI to produce convincing synthetic identities and deepfakes that include audio, images, and videos that are increasingly sophisticated and practically impossible to differentiate from genuine content without the help of technology. Fraudsters also exploit the power of Large Language Models (LLMs) by creating eloquent chatbots and elaborate phishing emails to help them steal vital information or establish communication with their targets. Mitigation comes in many forms, depending on the business, but the fundamental differentiator in the fight against evolving and increasing fraud attempts is the ability to have a holistic view of the consumer. Businesses today deploy multiple solutions from various vendors to ensure fraud mitigation covers all touchpoints. Although full coverage may exist, businesses often don’t have a holistic offline and digital view of the consumer, meaning losses can accumulate before patterns emerge within these siloed views. Rapidly evolving, highly automated, and large-scale attacks demand an up-to-date cross-industry view of online and offline identity behavior, linkages, and interactions. The flexible solution must similarly leverage GenAI to spot and validate fraud signals, interpret intelligence from fraud analysts, and quickly operationalize new attributes and models to keep pace with attackers. This is where layered fraud and identity controls in real time and a comprehensive offline analytics platform work together Download the eBook to discover: The rise of GenAI GenAI impact by fraud type Deepfakes: The authenticity challenge The challenge of detecting synthetic identoties Scaling up: The emergence of bot-as-a-service Authorised Push Payment Fraud (APP Fraud) Understanding the role of intent and context in fraud prevention A holistic view of the consumer with Ascend Fraud Sandbox Key takeaways: Find out how to mitigate against GenAI-enhanced fraud Businesses that implement these recommendations will be best equipped to manage fraud spikes from GenAI while simultaneously protecting good customer experiences from being negatively impacted by unnecessary friction. Ascend Fraud Sandbox helps businesses to shine a light on the holistic view of consumer activity across the industry, moving far beyond the typical point-in-time, product-specific view of consumers.Mike Gross, Vice President, appled fraud research and analytics, experian Download eBook

Experian has been named a leader in Liminal’s Link Index for Account Takeover Prevention in Banking. Download Report Advances in technology have increased the scale and sophistication of fraud attacks for businesses around the globe with a significant increase in recent years in account takeover fraud (ATO). During the pandemic there was a rise in account opening attacks as the world moved in lockstep to digital channels, creating huge growth in online digital accounts. Now fraudsters are attempting to takeover those digital accounts and are leveraging AI tools to convince consumers to give away their login credentials, creating an enormous financial risk and loss for banks and other service providers. In a March 2024 survey of bank buyers across North America, Europe, Latin America, Asia Pacific, and the Middle East, Liminal found that ATO attacks now average $6,232 per incident, while fraud teams have reported a 66.8% increase in social engineering attacks in the past two years. However, Liminal also found that despite the growing exposure, only 44% of banks are leveraging mobile device signals. The opportunity for banks to implement more effective tools is the result of a combination of factors: 96% are worried about balancing ATO prevention with privacy laws. 82% say customization was necessary to comply with regional regulations. 96% have concerns about limitations on device signals stemming from data restrictions with consumer technologies. As a result, banks are faced with a three-pronged problem: simultaneously solving for authentication, identity and fraud prevention. Identity across the customer lifecycle Truly understanding a customer, especially in a digital-first environment where hundreds of billions of events occur each year, requires much more than ensuring a name matches a social security number and a physical address. The customer, their account information, the device they use, the network they are coming from, the geolocation of their device, and the behavior they exhibit are intertwined. Banks must now assess more information than ever before to try to distinguish between a legitimate customer and fraudsters. This challenge only gets harder when businesses require more complex passwords, which users promptly forget. Fraudsters, ever creative, exploit the password reset processes to impersonate the customer and convince businesses to give them the new reset password. In ATO attacks, often the only data presented to a business by the user at the time of login is a username and password. However, there are hundreds of other variables that may be passed back and forth between the device and the business in that digital moment, which can be useful for identifying potential threats or legitimate users. This exercise can be a monumental task that involves capturing vast data sets, knowing the difference between critical data and data that increases workload, analyzing that data and then marrying that back to what you know about the customer, all in a few milliseconds. And this is where one of the biggest hurdles exists. These vast data sets sit across a complex set of systems and technologies that have been implemented (but not fully integrated) over time. And consider within this context, the authentication team managing ATO that would otherwise benefit from a cohesive set of data isn’t usually aligned with the general fraud teams and is even further separated from the credit risk or compliance teams. These gaps in technologies and teams hinder ATO prevention and provide zero support for any interdependencies with other critical functions – and fraudsters are more than happy to exploit this weakness. On the other hand, managing a more complete view of the customer (which allows the business to streamline operational costs, data costs, and infrastructure costs) to prevent more ATO attacks and provide a more seamless experiences for the consumer has never been more possible. A fundamental shift in mindset is required to prevent fraudsters from exploiting gaps between business functions. Legitimate customers do not care about these internal divisions; they only see the inconsistency when one part of the business has no knowledge of them compared to another. This disconnect not only frustrates customers but also undermines trust and security. To effectively combat ATO attacks, financial institutions must leverage comprehensive data insights that cover various touchpoints. Integrating identity verification, device intelligence, and behavioral analytics is essential for distinguishing legitimate users from fraudsters. Breaking down traditional silos and enabling seamless data sharing ensures a holistic approach to fraud prevention, delivering a secure and frictionless customer experience. Liminal, a leading market intelligence firm specialising in digital identity, cybersecurity, and fintech markets, recently named Experian as a leader in its Link Index for ATO Prevention in Banking. Leading in ATO prevention The report highlights vendors that lead in authentication, fraud and identity and based on two primary criteria: product execution and strategic positioning. As a top-ranked vendor overall and in product execution, Experian’s performance underscores the effective integration of identity management in our solutions, positioning us as a leader in shaping strategies for account takeover prevention over the next five years. Download Liminal’s Link Index for ATO Prevention in Banking “When it comes to ATO prevention, banks are prioritizing highly accurate solutions that minimize fraud losses and limit financial loss, while reducing customer abandonment through a seamless user experience. Overall satisfaction is most strongly correlated with scalability. As a leader in this evaluation, Experian not only delivers these capabilities to banks, it also demonstrates an unparalleled ability to meet the market’s growing demand, which is projected to reach $1.5 billion by 2028.” Will Charnley, Chief Operating Officer, Liminal The report details the trends that are fundamentally reshaping the ATO threat landscape and today’s specific challenges, as well as those on the horizon, that banks must overcome, while also meeting an increasing expectation of customer satisfaction. Key statistics detail a prescriptive assessment of the market landscape and total addressable market, as well as findings from a March 2024 survey of banks conducted by Liminal, which includes: Specific key purchasing criteria (KPC). The scale and average cost (by volume and per incident) of ATO attacks. A descriptive methodology for calculating fraud loss opportunity costs. A priority-tiered description of ATO solution capabilities. As banks continue to operate in a competitive digital environment that favours excellent customer experience in parallel with fraud prevention, it is crucial to recognize that the front-end experience mirrors back-end operations; therefore, creating seamless integration on both sides is critical. Download Report CrossCoreR provides a fully-featured toolkit that leverages a wide range of capabilities for highly accurate and scalable ATO prevention.

New IDC MarketScape: Worldwide Enterprise Fraud Solutions 2024 Vendor assessment provides valuable resource as organizations face increased fraud. With fraud scam losses reported to have reached $10bn in 2023*, preventing fraud in today's digital landscape has become increasingly complex. As organizations continue to leverage advanced technologies, fraudsters have also evolved, employing ever more sophisticated techniques. Striking the balance between robust fraud prevention and delivering a seamless digital experience to customers has become a priority for organizations, with customer experience (CX) proving to be a competitive differentiator in a market with high digital expectations. Why real-time detection matters for CX As techniques employed by fraudsters get faster, so does the need for quick and effective fraud detection, making real-time solutions increasingly important during a period of rapid technological advancement. The development of real-time fraud solutions not only minimizes financial losses, but it has also paved the way for frictionless customer journeys, with identity and fraud checks no longer impeding customer experience. Using machine learning to leverage data and enable fraud detection To enable real-time detection, proactive fraud prevention also requires the analysis of vast amounts of data. Deploying static rules to identify anomalies in data does not allow for nuance because the thresholds within the rules are fixed, and therefore real-time patterns cannot be adjusted to within the model. Machine learning not only allows businesses to leverage data more effectively through analysis, allowing for flexibility within the parameters, but it also removes some manual processes, improving efficiency by updating models faster into production. Approving good customers is the number one priority for businesses, and a frictionless digital customer journey is the catalyst for this. To minimize financial losses while reducing the overall number of fraud incidents, organizations are looking to real-time fraud detection, enabled by machine learning. "As fraud risk losses continue to increase, the pursuit of fraud risk management solutions designed to identify, mitigate, and prevent fraud incidents and losses is a topic with increasing focus within financial services.” Sean O'Malley, research director, IDC Financial Insights: Worldwide Compliance, Fraud and Risk Analytics Strategies IDC, the premier global market intelligence firm, released its latest IDC MarketScape: Worldwide Enterprise Fraud Solutions, providing a valuable resource to buyers looking for new solutions in the market. Download excerpt of IDC MarketScape: Worldwide Enterprise Fraud Solutions 2024 Vendor Assessment The report highlights: Fraud solutions are increasingly moving toward real-time fraud detection and prevention. There are significant enhancements in technological capabilities, particularly with respect to cloud computing. Some newer fraud solutions take advantage of the increased computing power that is available to both expand the data sets being used to identify potential fraud incidents and enhance the models designed to detect, mitigate, and prevent fraud. Experian is recognized as a leader in this report. The IDC MarketScape notes, “In addition to evaluating the transactional data for potential fraud, Experian's CrossCore solution includes identity-authentication tools. The solution uses identity data, device intelligence, email and phone intelligence, alternative identity data, biometrics, behavioral biometrics, one-time passwords, and document verification to confirm identities and aid with identity protection, including synthetic identity protection. Experian utilizes multiple data partnerships in its fraud solution, which often can help provide a more comprehensive understanding of fraud risks and exposures.” To achieve a frictionless and secure customer experience, it is the integration of digital identity and fraud risk that is creating a gold standard for businesses. A siloed approach to fraud prevention not only leaves gaps for criminals to exploit, but it also presents consequences for customer experience too. The ability to layer multiple fraud capabilities together in a synchronized effort to achieve the best analytics-driven output possible can allow businesses to have the flexibility within their user journeys to optimize and control the order in which capabilities are called, removing friction, and ensuring good customers are successfully onboarded. Add in a final layer of machine learning to ensure the deployment of unified decisioning, and businesses are left with cohesive and explainable decisions. At Experian, we are working diligently to stay on the cutting edge of fraud and identity. In addition to our proprietary credit data on over 1.5 billion consumers and over 200 million businesses, Experian leverages a unique curated partner ecosystem to provide a more comprehensive understanding of fraud risks and exposures. Our powerful technology platform enables users to leverage a wide range of tools to combat their customized fraud challenges. Download Report Excerpt More on Crosscore® *IDC MarketScape: Worldwide Enterprise Fraud Solutions 2024 Vendor Assessment

We explore four fraud trends likely to be influenced the most by GEN AI technology in 2024, and what businesses can do to prevent them. 2023: The rise of Generative AI 2023 was marked by the rise of Generative Artificial Intelligence (GEN AI), with the technology’s impact (and potential impact) reverberating across businesses around the world. 2023 also witnessed the democratisation of GEN AI, with its usage made publicly available through multiple apps and tools such as Open AI's Chat GPT and DALL·E, Google's Bard, Midjourney, and many others. Chat GPT even held the world record for the fastest growing application in history (until it was surpassed by Threads) after reaching 100 million users in January 2023, just less than 2 months after its launch. The profound impact of GEN AI on everyday life is also reflected in the 2023 Word of the Year (WOTY) lists published by some of the biggest dictionaries in the world. Merriam-Webster’s WOTY for 2023 was 'authentic'— a term that people are thinking about, writing about, aspiring to, and judging more than ever. It's also not a surprise that one of the other words outlined by the dictionary was 'deepfake', referencing the importance of GEN AI-inspired technology over the past 12 months. Among other dictionaries that publish WOTY lists, both Cambridge Dictionary and Dictionary.com chose 'hallucinate' - with new definitions of the verb describing false information produced by AI tools being presented as truth or fact. A finalist in the Oxford list was the word 'prompt', referencing the instructions that are given to AI algorithms to influence the content it generates. Finally, Collins English Dictionary announced 'AI' as their WOTY to illustrate the significance of the technology throughout 2023. GEN AI has many potential positive applications from streamlining business processes, providing creative support for various industries such as architecture, design, or entertainment, to significantly impacting healthcare or education. However, as signalled out by some of the WOTY lists, it also poses many risks. One of the biggest threats is its adoption by criminals to generate synthetic content that has the potential to deceive businesses and individuals. Unfortunately, easy-to-use, and widely available GEN AI tools have also created a low entrance point for those willing to commit illegal activities. Threat actors leverage GEN AI to produce convincing deepfakes that include audio, images, and videos that are increasingly sophisticated and practically impossible to differentiate from genuine content without the help of technology. They are also exploiting the power of Large Language Models (LLMs) by creating eloquent chatbots and elaborate phishing emails to help them steal important information or establish initial communication with their targets. GEN AI fraud trends to watch out for in 2024 As the lines between authentic and synthetic blur more than ever before, here are four fraud trends likely to be influenced most by GEN AI technology in 2024. A staggering rise in bogus accounts: (impacted by: deepfakes, synthetic PII)Account opening channels will continue to be impacted heavily by the adoption of GEN AI. As criminals try to establish presence in social media and across business channels (e.g., LinkedIn) in an effort to build trust and credibility to carry out further fraudulent attempts, this threat will expand way beyond the financial services industry. GEN AI technology continues to evolve, and with the imminent emergence of highly convincing real-time audio and video deepfakes, it will give fraudsters even better tools to attempt to bypass document verification systems, biometric and liveness checks. Additionally, they could scale their registration attempts by generating synthetic PII data such as names, addresses, emails, or national identification numbers. Persistent account takeover attempts carried out through a variety of channels: (impacted by: deepfakes, GEN AI generated phishing emails)The advancements in deepfakes present a big challenge to institutions with inferior authentication defenses. Just like with the account opening channel, fraudsters will take advantage of new developments in deepfake technology to try to spoof authentication systems with voice, images, or video deepfakes, depending on the required input form to gain access to an account. Furthermore, criminals could also try to fool customer support teams to help them regain access they claim to have lost. Finally, it's likely that the biggest threat would be impersonation attempts (e.g., criminals pretending to be representatives of financial institutions or law enforcement) carried out against individuals to try to steal access details directly from them. This could also involve the use of sophisticated GEN AI generated emails that look like they are coming from authentic sources. An influx of increasingly sophisticated Authorised Push Payment fraud attempts: (impacted by: deepfakes, GEN AI chatbots, GEN AI generated phishing emails)Committing social engineering scams has never been easier. Recent advancements in GEN AI have given threat actors a handful of new ways to deceive their victims. They can now leverage deepfake voices, images, and videos to be used in crimes such as romance scams, impersonation scams, investment scams, CEO fraud, or pig butchering scams. Unfortunately, deepfake technology can be applied to multiple situations where a form of genuine human interaction might be needed to support the authenticity of the criminals' claims. Fraudsters can also bolster their cons with GEN AI enabled chatbots to engage potential victims and gain their trust. If that isn’t enough, phishing messages have been elevated to new heights with the help of LLM tools that have helped with translations, grammar, and punctuation, making these emails look more elaborate and trustworthy than ever before. A whole new world of GEN AI Synthetic Identity: (impacted by: deepfakes, synthetic PII)This is perhaps the biggest fraud threat that could impact financial institutions for years to come. GEN AI has made the creation of synthetic identities easier and more convincing than ever before. GEN AI tools give fraudsters the ability to generate fake PII data at scale with just a few prompts. Furthermore, criminals can leverage fabricated deepfake images of people that never existed to create synthetic identities from entirely bogus content. Unfortunately, since synthetic identities take time to be discovered and are often wrongly classified as defaults, the effect of GEN AI on this type of fraud will be felt for a long time. How to prevent GEN AI related fraud As GEN AI technology continues to evolve in 2024, its adoption by fraud perpetrators to carry out illegal activities will too. Institutions should be aware of the dangers they possess and equip themselves with the right tools and processes to tackle these risks. Here are a few suggestions on how this can be achieved: Fight GEN AI with GEN AI: One of the biggest advantages of GEN AI is that while it is being trained to create synthetic data, it can also be trained to spot it successfully. One such approach is supported by Generative Adversarial Networks (GANs) that employ two neural networks competing against each other — a generator and a discriminator. The generator creates synthetic data, while the discriminator evaluates the generated data and tries to distinguish between real and fake samples. Over time, both networks fine tune themselves, and the discriminator becomes increasingly successful in recognising synthetic content. Other algorithms used to create deepfakes, such as Convolutional Neural Networks (CNNs), Recurrent Neural Networks (RNNs), and Autoencoders, can also be trained to spot anomalies in audio, images, and video, such as inconsistencies in facial movements or features, inconsistencies in lighting or background, unnatural movements or flickering, and audio discrepancies. Finally, a hybrid approach that combines multiple algorithms often presents more robust results. Advanced analytics to monitor the whole customer journey and beyond: Institutions should deploy a fraud solution that leverages data from a variety of tools that can spot irregular activity across the whole customer journey. That could be a risky activity, such as a spike in suspicious registrations or authentication attempts, unusual consumer behaviour, irregular login locations, suspicious device or browser data, or abnormal transaction activity. A best-in-class solution would give institutions the ability to monitor and analyse trends that go beyond a single transaction or account. Ideally, that means monitoring for fraud signals happening both within a financial institution’s environment and across the industry. This should allow businesses to discover signals pointing out fraudulent activity previously not seen within their systems or data points that would otherwise be considered safe, thus allowing them to develop new fraud prevention models and more comprehensive strategies. Fraud data sharing: Sharing of fraud data across multiple organisations can help identify and spot new fraud trends from occurring within an instruction's premises and stop risky transactions early. Educate consumers: While institutions can deploy multiple tools to monitor GEN AI related fraud, regular consumers don't have the same advantage and are particularly susceptible to impersonation attempts, among other deepfake or GEN AI related cons. While they can't be equipped with the right tools to recognize synthetic content, educating consumers on how to react in certain situations related to giving out valuable personal or financial information is an important step in helping them to remain con free. Learn more with our latest fraud reports from across the globe: UK Fraud Report 2023 US Fraud Report 2023 EMEA + APAC Fraud Report 2023