Experian’s 2024 Identity and Fraud Report Highlights Evolving Fraud Landscape

Fraudsters are opportunistic. They are capitalizing on using new technology to create more sophisticated fraud schemes, underscoring the importance and urgency of prioritizing fraud prevention strategies. In fact, the FTC reported that consumers lost more than $10 billion to fraud in 2023, the first time losses have ever been so high.

As a leader in the fraud prevention and identity verification space, we’re dedicated to helping clients stay ahead of evolving fraud trends and challenges.

To that end, today we released the findings of our 9th annual Experian Identity and Fraud Report, which provides an in-depth look at the current fraud landscape and the sentiments of both consumers and businesses. Some of the top findings include:

• Consumers’ top security concerns include: identity theft (84%) and stolen credit card information (80%), a 20% increase compared to 2023.
• Sixty-three percent of people say it is important for businesses to be able to recognize them online.
• Eighty-one percent of consumers say they’re more trusting of businesses that can accomplish easy and accurate identification.
• People want more types of identity recognition techniques used to verify their identities with physical analytics (71%), PINs sent to a mobile device (70%) and behavioral analytics (66%) evoking the highest sense of security for consumers.
• Companies recognize the importance of focusing on Gen AI, with 70% saying they expect AI fraud to be the second greatest challenge for their business.
• Despite AI fraud concerns, businesses ranked detecting and preventing Gen AI fraud and deepfakes as the 12th most important investment area behind prevention for legacy fraud types.

With these fraud concerns in mind, companies need to review their current fraud tools and strategies, and look for opportunities to add to or change current approaches, to not only mitigate risk but also keep their customers safe while providing a positive experience. Businesses should work with a trusted partner who can help them implement a multilayered approach to identity verification and fraud prevention and help them meet consumer expectations.

Experian offers a full suite of automated tools that harness data and analytics to prevent fraud and mitigate losses. We’re dedicated to empowering clients with the insights they need to make informed, data-driven decisions that safeguard their customers and reduce risk. Our recent acquisition of NeuroID, an industry leader in behavioral analytics, is a testament to this.

To learn more about Experian’s fraud prevention solutions: please click here.

To read Experian’s 2024 Identity and Fraud Report, please click here.