Latest Trends: Fraud and Prevention 2025

This report explores the latest fraud trends affecting the financial services industry. These include authorized push payments, deepfake scams, evolving cyber threats, the consequences of innovation such as open banking, and the prevention methods being implemented on global, national, and business levels.

Malware, keyloggers, social engineering, digital wallet fraud, and authorized push payment fraud are becoming increasingly prevalent, demonstrating the growing sophistication and diversification of fraud tactics. Fraudsters are leveraging emerging technologies and exploiting consumer vulnerabilities across multiple touchpoints. Major banks continue to face scrutiny over non-compliance with fraud and anti-money laundering regulations, resulting in hefty fines and reputational damage. Fraud trends vary by region, with organized crime syndicates exploiting political instability in the Americas, while Asia and Europe see a surge in romance scams targeting digital-first consumers.

Scope

• Financial providers' aggressive pursuit of growth has inadvertently increased vulnerabilities, particularly in areas such as deepfake-enabled identity theft and cryptocurrency-related fraud. Real-time payments and open banking, while enhancing transaction speed and accessibility, have also introduced new risks, as fraudsters exploit instant fund transfers with limited recourse for victims.
• As fraudsters refine their methods, financial providers must stay ahead by enhancing existing fraud prevention strategies and deploying new, adaptive measures. Collaboration between banks, fintechs, and regulators will be crucial in creating a more resilient fraud prevention landscape.
• Financial institutions can take several proactive steps to combat evolving fraud threats, including investing in AI-driven fraud detection, fostering industry collaboration, and deploying adaptive authentication solutions. The adoption of decentralized identity systems could enhance security by reducing reliance on traditional verification methods prone to breaches.

Reasons to Buy

• In an era of rapid digital transformation, fraud has become more sophisticated, pervasive, and financially damaging than ever before.
• The rise of real-time payments, open banking, digital assets and AI-driven scams has created new vulnerabilities, forcing financial institutions, businesses and regulators to continuously adapt their fraud prevention strategies. By examining key case studies, such as regulatory developments and technological advancements, this report provides a comprehensive overview of fraud risks and the strategies shaping the future of fraud prevention in an increasingly digital world.