This hot-off-the-press article from IT Finanzmagazin perfectly encapsulates the state of today’s fraud landscape. The rapid evolution of generative AI (GenAI) is transforming fraud at an unprecedented pace, introducing new threats that challenge businesses across industries.
Experian’s latest Forrester Study highlights how 76% of German fraud prevention leaders believe that GenAI has permanently changed the fraud landscape. Fraud tactics have become increasingly sophisticated, leading to an alarming rise in API fraud, money laundering, and bot attacks – trends that demand urgent action.
As CEO of Experian DACH, I firmly believe that traditional rule-based systems are no longer sufficient to counter these evolving threats. The battle between businesses and fraudsters is now driven by AI, and only companies leveraging advanced AI-powered analytics will stay ahead. Continuous innovation, collaboration, and AI-driven fraud detection are now imperative to protect financial and personal data in our increasingly digital world.
The original article in German, published on February 13, 2025, can be found at: IT Finanzmagazin.
For more details and the full Experian Forrester Study, visit: Experian Academy.
Picture Sources: Experian, Pixabay. Translation by ChatGPT.
Experian Study: GenAI Has Forever Changed the Fraud Landscape
A study by data and technology company Experian reveals how Generative AI (GenAI) is reshaping fraud prevention. The study surveyed 449 senior fraud prevention executives and decision-makers from the financial services, telecommunications, and e-commerce industries across eight countries, including Germany.
Key findings:
- 76% of German respondents confirm that GenAI has permanently changed the fraud landscape.
- 61% of German companies lost more money to fraud in 2024 than the previous year.
- The biggest challenges for German businesses are a lack of AI-based fraud prevention solutions and inability to implement machine learning (ML) models.
- 43% of German companies identified ML-based fraud detection as a top priority for the next 12 months.
Fraud Tactics Are Becoming More Sophisticated
According to the study, fraud methods have become more complex and advanced over the past 12 months. The rise of GenAI has led to an “industrialization of fraud”, where criminals create and deploy synthetic identities, deepfakes, and other fraudulent tactics at scale with minimal effort.
Boom in API Fraud, Money Laundering, and Bot Attacks
The financial services and telecommunications sectors report a significant increase in certain fraud types compared to the previous year.
- API fraud saw the biggest surge, with 67% of financial and telecom providers reporting a rise in such attacks.
- Fraudsters exploit vulnerabilities in Application Programming Interfaces (APIs) to gain unauthorized access to systems or steal sensitive data.
Artificial intelligence is revolutionizing the battle between businesses and fraudsters. Global threats require cutting-edge technologies and data analytics to stay ahead of new risks. Rule-based models are no longer sufficient to respond to the dynamically evolving fraud landscape while ensuring businesses fulfill their due diligence towards their customers.
Jochen Werne, CEO of Experian DACH, on AI’s Role in Fraud Prevention
Companies that leverage AI-powered transaction analysis are best positioned to counter these threats. Continuous AI-driven refinement of fraud detection models is crucial to protecting financial and personal data in an increasingly digital world.
Using AI to Combat GenAI-Powered Fraud
The study further reveals:
- 76% of German respondents say that GenAI has permanently changed fraud.
- To stay competitive, companies must adopt AI-powered tools for fraud detection and mitigation.
- 61% of German businesses recognize the growing importance of collaboration and data-sharing in fraud prevention.
- Anti-fraud consortia will play a key role in fighting fraud over the next five years.
Fraud is evolving at an unprecedented rate, and businesses must embrace AI-driven innovation to safeguard their operations. Collaboration, real-time fraud detection, and advanced machine learning capabilities will be the foundation for future-proof fraud prevention strategies.
