Experian’s latest research reveals that Generative AI has fundamentally transformed fraud prevention strategies, with 85% of senior fraud protection leaders acknowledging its permanent impact on the security landscape.
The study, conducted by Forrester Consulting across 449 global decision-makers including those from India, highlights a concerning trend: 52% of respondents reported increased fraud losses in the past year, while 46% experienced a rise in overall fraud attacks.
The research identifies a significant shift from individual bad actors to organized fraud syndicates empowered by GenAI capabilities. These groups deploy sophisticated tactics including fake identities and deepfakes at industrial scale, with half of businesses struggling to detect GenAI’s involvement in attacks.
Financial implications extend beyond direct losses, as 54% of respondents indicate false positives are costlier than fraud itself. This underscores the critical need for precision in detection systems.
To counter evolving threats, 73% of leaders recognize AI/ML-based solutions as essential. However, implementation challenges persist, with 48% of Indian businesses citing insufficient training data and 60% reporting inadequate data quality for effective ML models.
The collaborative approach gains traction, with 77% acknowledging partnerships as crucial and 61% finding value in consortium-based data sharing. Notably, 74% of Indian organizations report positive ROI from participation in such initiatives.
“At Experian, we continue using cutting-edge technology, data analytics, and industry consortia to stay ahead of emerging threats,” said Manish Jain, Country Managing Director at Experian India, emphasizing their commitment to developing ML-based tools that incorporate diverse data points to help financial institutions combat fraudulent activities.
