Combating GenAI Fraud: Insights from Experian’s 2024 Global Identity & Fraud Report

The rise of Generative AI (GenAI) is fueling a new wave of sophisticated fraud, transforming the financial services landscape. Experian’s 2024 Global Identity & Fraud Report highlights the challenges businesses face, and the strategies needed to protect consumers while maintaining seamless digital experiences.

Based on insights from more than 1,000 business and fraud leaders, and 4,000 consumers worldwide, the report identifies three key forces shaping fraud prevention:

1. GenAI-Powered Fraud: Fraudsters use AI to craft highly personalized attacks, exploiting vulnerabilities across the customer journey.
2. Evolving Regulations: Stricter government requirements demand rapid adaptation of fraud prevention strategies.
3. Customer Expectations: Consumers prioritize secure, efficient services. Many abandon brands after poor account-opening or transactional experiences.

A Multi-Layered Defense

The report emphasizes the need for a multi-layered approach to combat fraud effectively. Businesses are increasing investments in AI, machine learning, and data-sharing networks to detect and prevent fraud in real-time.

“Fraud operates across borders and targets various points in the customer journey,” said Greg Wright, Experian’s Executive Vice President of Identity and Fraud. “Businesses must leverage advanced analytics and alternative data to stay ahead of these evolving threats.”

Balancing Security and Experience

Consumers value security, but demand convenience. Striking the right balance is critical, as many switch providers after experiencing delays or cumbersome processes. Businesses can succeed by:

• Using Advanced Analytics: Leveraging AI-driven insights to prevent fraud while maintaining smooth customer experiences.
• Orchestrating Fraud Prevention: Integrating tools to provide a 360-degree view of customers, ensuring fraud detection is seamless and comprehensive.

The Path Forward

The rise of GenAI fraud underscores the need for global collaboration and innovation. By adopting advanced technologies and prioritizing customer-centric solutions, businesses can protect consumers while fostering trust.

Experian’s 2024 report offers actionable insights for navigating these challenges. Download the full report to learn how to outpace fraudsters while delivering secure, seamless experiences.