Experian Report: Generative AI and Deepfakes Emerge as Top Fraud Threats, Exposing Gaps in Business Preparedness

Experian Report: Generative AI and Deepfakes Emerge as Top Fraud Threats, Exposing Gaps in Business Preparedness

(IN BRIEF) Experian’s 2024 U.S. Identity and Fraud Report highlights the growing concerns around generative AI, deepfakes, and cybercrime as major threats to businesses. Despite recognizing these risks, companies are underinvesting in advanced fraud prevention tools, leaving them vulnerable to new types of fraud. The report reveals that while consumers are increasingly worried about identity theft and online security, there is a gap between their trust in advanced security measures and the actual use of these technologies by businesses. Experian emphasizes the need for a multi-layered approach to fraud prevention to protect both companies and consumers.

(PRESS RELEASE) DUBLIN, 22-Aug-2024 — /EuropaWire/ — In a revealing new report, Experian highlights the growing concerns around generative AI, deepfakes, and cybercrime as major threats to businesses in 2024. The 2024 U.S. Identity and Fraud Report, now in its 9th edition, offers critical insights into the evolving fraud landscape, underscoring the increasing pressures on companies to address these emerging challenges while meeting rising consumer expectations for online security.

The report comes at a time when consumer losses to fraud reached an all-time high of $10 billion in 2023, a 14% increase from the previous year. As more people rely on digital transactions, concerns about identity theft and online security are at an all-time high, with 84% of consumers expressing anxiety over identity theft and 80% worried about stolen credit card information.

Despite this heightened awareness, the report reveals a troubling gap: while businesses acknowledge the risks posed by generative AI-related fraud, there remains a significant underinvestment in combating these new threats. Many companies still prioritize traditional fraud prevention methods, leaving them potentially vulnerable to the sophisticated schemes made possible by new technologies.

Experian’s Chief Innovation Officer for North America, Kathleen Peters, emphasizes the need for a comprehensive, multi-layered approach to fraud prevention. “As digital transactions continue to grow, companies must stay ahead of the curve by investing in advanced fraud detection tools that leverage data, analytics, and cutting-edge technology to safeguard both their operations and their customers.”

The report also highlights a disconnect between consumer trust in advanced security measures like physical biometrics and behavioral analytics and the relatively low adoption of these methods by businesses. With only 30% of companies currently using these technologies, there is a clear opportunity for organizations to enhance their fraud prevention strategies and build greater trust with consumers.

To learn more about the findings and recommendations in Experian’s 2024 U.S. Identity and Fraud Report, visit the Experian website.

Methodology:

Experian’s 2024 Identity and Fraud Report is based on two major surveys conducted in the U.S. in March 2024. The first asked more than 2,000 U.S. consumers about their online interactions and expectations regarding security and customer experience. The second survey asked more than 200 businesses in the U.S. about their strategies for effective fraud management, customer identification and authentication, including investments related to security and customer experience. Companies ranged in size from $10–$49 million to above $1 billion in revenue. Industries that completed the survey include retail banks, fintech, consumer technology and electronics, payment system providers, and many other companies from a range of verticals.

About Experian

Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and software. We also assist millions of people to realise their financial goals and help them to save time and money.

We operate across a range of markets, from financial services to healthcare, automotive, agrifinance, insurance, and many more industry segments.

We invest in talented people and new advanced technologies to unlock the power of data and innovate. As a FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 22,500 people across 32 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com.

Experian and the Experian trademarks used herein are trademarks or registered trademarks of Experian and its affiliates. Other product and company names mentioned herein are the property of their respective owners.

Media Contact:

Gerry Tschopp
Head of Global External Communications
+1 714 830 7756
+1 949 677 3377
gerry.tschopp@experian.com

SOURCE: Experian