With the rapid progress in AI, businesses have become increasingly worried about the evolution of well-known fraud types, such as synthetic identity fraud (SIF) and phishing, driven by generative AI. This technology can produce human-like text, realistic images, and even deepfake videos on a large scale, making it easier for fraudsters to fabricate convincing synthetic identities and phishing emails and texts.
Many respondents named generative AI as the biggest fraud trend over the next 3-5 years.
Forty-five percent of companies are worried about generative AI’s ability to create more accurate synthetic identities. And with fraudsters leveraging generative AI, 74% are concerned about the potential for synthetic identity fraud (SIF) to increase.
Concern about SIF doesn’t always translate to action. Despite knowing the risk, the number of companies unsure if SIF has impacted their business or not tracking it at all has steadily increased, rising from 23% in 2021 to 39% in 2024.
Over half (52%) of companies have seen an overall increase in fraud across mobile, online, contact center, and in-person channels. The most significant impact has been in digital channels, with online and mobile fraud making up 65% of this rise.
With 70% of companies planning to maintain or increase their investment in mobile over the next year, it is crucial to balance convenience with robust security measures to ensure safe customer experiences.
Despite the focus on digital fraud, contact center and in-person channels should not be overlooked. Fraudulent activities exploit vulnerabilities across both online and offline systems, necessitating a comprehensive, multi-layered approach to identity verification.
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