Experian Report Highlights the Growing Role of AI and ML in Combatting Evolving Fraud Threats

Experian Report Highlights the Growing Role of AI and ML in Combatting Evolving Fraud Threats

(IN BRIEF) Experian’s latest research, “Proactive Defence: Tackling Evolving Fraud Threats,” reveals how Generative AI (GenAI) is transforming the fraud landscape. A survey of 400 senior fraud leaders across eight countries highlights that 73% believe GenAI has permanently altered fraud tactics, leading to more sophisticated and widespread threats. With 54% reporting an increase in fraud losses over the past year, the need for AI/ML-based fraud solutions is critical. The research emphasizes the growing importance of fraud orchestration platforms and collaboration with external partners to effectively detect and prevent fraud. Machine Learning (ML) models were identified as essential for keeping pace with these challenges, although businesses face implementation hurdles due to insufficient data. Experian continues to innovate in this space to help businesses secure their operations and protect sensitive information.

(PRESS RELEASE) DUBLIN, 13-Feb-2025 — /EuropaWire/ — Experian’s latest research, “Proactive Defence: Tackling Evolving Fraud Threats,” conducted by Forrester Consulting, explores how Generative AI (GenAI) is reshaping the fraud landscape. The study surveyed over 400 senior fraud leaders and decision-makers across eight countries, including South Africa, India, Norway, Denmark, Spain, Italy, the Netherlands, and Germany. The findings underscore the growing threat of fraud and highlight how AI and Machine Learning (ML) are becoming essential tools in combating these risks.

A striking 73% of respondents agree that GenAI has had a lasting impact on fraud, making it more complex and widespread. GenAI has enabled fraudsters to rapidly scale their operations, employing synthetic identities, deepfakes, and other deceptive techniques. As a result, more than half (56%) of businesses are struggling to detect and measure the impact of GenAI-based fraud attacks. The need for advanced, AI-driven fraud prevention is clear, with 73% of decision-makers noting that fraud orchestration platforms are increasingly necessary to manage the growing array of fraud tools.

Over the past year, 54% of businesses reported an increase in fraud losses, with identity theft being a major contributor. In response, 71% of participants agree that AI/ML-based solutions are vital to staying ahead of the evolving fraud threat. Fraud orchestration platforms allow businesses to integrate multiple fraud detection tools, improving accuracy and efficiency in identifying fraudulent activities while reducing operational costs.

Collaboration is also key in addressing these challenges, with 78% of fraud leaders emphasizing the importance of partnering with external entities to strengthen fraud prevention efforts. The research highlights the value of sharing fraud data through consortiums, with 64% of businesses reporting positive ROI from their participation. Despite the benefits, data-sharing challenges remain, presenting obstacles to more effective fraud detection.

The research further reveals that implementing Machine Learning (ML) models for fraud prevention is a priority for many businesses, but more than half (53%) face difficulties with implementation due to insufficient or low-quality data. To overcome these hurdles, companies are increasingly turning to off-the-shelf, customizable ML models, which can be deployed more quickly than developing in-house models.

Shail Deep, Chief Operating Officer for Experian EMEA & APAC, remarked, “The integration of ML-based fraud prevention solutions is crucial for combating the sophisticated fraud threats we face today. Our research shows that 73% of fraud experts agree that GenAI has fundamentally changed the landscape, making advanced solutions and flexible technology a necessity for businesses. At Experian, we remain committed to driving innovation and enhancing fraud detection to protect both our clients and consumers.”

To explore further insights and learn about Experian’s fraud prevention services, you can download the full report here.

Methodology

Experian’s report is based on a commissioned Forrester Consulting survey of 449 fraud decision-makers in Financial Services, Telcos and eCommerce across eight countries, including South Africa, India, Norway, Denmark, Spain, Italy, the Netherlands, and Germany.

About Experian

Experian is a  global data and technology company, powering opportunities for people and businesses around the world. We help redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver 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, agribusiness, insurance, and many more industry segments.

We invested 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.

Media Contacts:

Yolanda Zondo
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+27 (0) 64 753 7152

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SOURCE: Experian