Shail Deep, Chief Operating Officer (COO), Experian EMEA & APAC
The report identifies a notable shift from individual fraudsters to highly organized fraud syndicates, a trend intensified by the advent of GenAI. 85% of businesses in India agree that GenAI has permanently altered the fraud landscape, increasing its complexity and sophistication. GenAI has also enabled the “industrialisation of fraud,” where fraudsters create and deploy fake identities, deepfakes, and other fraud tactics on a large scale
Experian, a leading player in data and technology, in its latest research report, has provided insights from senior fraud protection leaders on how Generative AI (GenAI) is transforming the fraud landscape.
AI-driven fraud prevention is becoming essential for stronger security and lower costs.
The report identifies a notable shift from individual fraudsters to highly organized fraud syndicates, a trend intensified by the advent of GenAI. 85% of businesses in India agree that GenAI has permanently altered the fraud landscape, increasing its complexity and sophistication. GenAI has also enabled the “industrialisation of fraud,” where fraudsters create and deploy fake identities, deepfakes, and other fraud tactics on a large scale.
As a result, 50% of businesses struggle to detect the involvement of GenAI in fraud attacks and to assess its impact on losses. To counter this, businesses must adopt advanced AI-driven fraud prevention tools, integrate multiple security solutions, and adopt smarter fraud orchestration strategies—ensuring better detection, stronger security, and reduced costs.
The growing need for collaboration and advanced technologies
As fraud threats are becoming more complex, collaboration and advanced technologies have become more important than ever. In India, 77% of fraud decision-makers acknowledge that partnering with external entities is essential for effective fraud prevention.
Additionally, 61% agree that sharing fraud data through a consortium is an effective strategy to identify emerging fraud trends. Notably, 74% of Indian businesses have reported a positive return on investment from participating in such consortia, highlighting the benefits of collaborative efforts.
Incorporating disparate data points and utilizing the power of Customisable ML models can accelerate fraud prevention.
The escalating fraud threat underscores the critical role of sharing and looking at various data points, incorporated into supervised and unsupervised machine learning (ML) models in fraud prevention.
However, 48% of Indian businesses face challenges in implementing ML models due to insufficient training data, and 60% report a lack of quality data. Developing effective in-house ML models is complex; thus, customisable off-the-shelf ML models can expedite deployment and value realisation.
“In our continued commitment to develop and refine our solutions, we are using Machine Learning (ML)-based tools, such as in our Mule Risk Indicator, which incorporates traditional and non-traditional data points, to help Financial Institutions in identifying and mitigating fraudulent activities. By encouraging the use of these advanced tools, we empower businesses to navigate the complex landscape of fraud prevention with confidence. Our goal is to ensure that personal and financial information remains secure, providing peace of mind in an increasingly digital world.” said Manish Jain, Country Managing Director at Experian India.
Shail Deep, Chief Operating Officer (COO), Experian EMEA & APAC, said: “As we look ahead, the integration of ML-based fraud prevention is a necessity for businesses to fight back against today’s sophisticated fraud threat. Our research indicates that 85% of Fraud experts believe the fraud landscape has been dramatically changed by Generative AI. As a result, over 52% have seen an increase in losses from fraud attacks in the past year.Our goal is to create a safer digital world for our clients and consumers, ensuring their personal and financial information remains secure”
The adoption of new, flexible fraud prevention solutions can no longer be postponed.
Conducted by Forrester Consulting, the report reveals an increase in fraud losses driven by identity theft and highlights the importance of robust Artificial Intelligence (AI) and Machine Learning (ML)-based security measures in the fight against fraud.
The research surveyed 449 senior fraud protection leaders and decision-makers across multiple countries, including India, to provide a global and regional perspective on the impact of GenAI on fraud prevention.