GenAI is reshaping Fraud Prevention Strategies in India- Experian Insight report.
85% of respondents agree that Generative AI (GenAI) has permanently altered the fraud landscape.
52% of respondents have seen fraud losses increase in the last 12 months.
46% of respondents have seen increased overall fraud attacks in the past year.
54% of respondents find that false positives cost them more than fraud losses.
73% agree that AI/ML-based fraud solutions are critical to keep pace with a growing fraud threat.
Mumbai, 19 March 2025: Experian, a leader
in data and technology, presents its latest research report, offering insights
from senior fraud protection leaders on how Generative AI (GenAI) is
transforming the fraud landscape. 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.
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.
"At Experian, being the
recognised champions in the fight against fraud, we continue to use
cutting-edge technology, data analytics, and industry consortia to stay ahead
of emerging threats,” commented Manish Jain, Country Managing Director
at Experian India.
“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.” added Manish Jain
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. The adoption of new, flexible fraud prevention
solutions can no longer be postponed. At Experian, we are continuing to focus
on innovation, integrating the latest technologies to enhance detection. Our
goal is to create a safer digital world for our clients and consumers, ensuring
their personal and financial information remains secure.
To learn more about this report and
Experian's fraud prevention services, you can download the full report here
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