Adyen, a global financial technology platform, has revealed that fraud losses in Australia are increasing, as Australians lost nearly USD 1.700 per person to fraud in 2025, almost double the amount from the previous year.
Data from Adyen’s 2025 Retail Report shows that baby boomers were the most targeted group, experiencing a 332% increase in losses over the same period.
The impact affects both consumers and retailers. Over a quarter of Australian retailers reported losses of more than USD 1.3 million in the past year. Additionally, nearly one in three (31%) experienced more fraud attempts during peak season, showing the increased risk during busy shopping periods.
Peak season presents retailers with a dual challenge: managing soaring transaction volumes and increased fraud risks, while also offering one of the most important revenue opportunities of the year. Adryen’s 2025 Retail Report shows that 31% of Australian retailers expect more fraudulent attacks during this period.
Increased AI-driven fraud threats
AI is transforming the retail industry and the way Australians shop, but it’s also altering how scammers operate. AI-created lures, like texts or emails, are no longer full of spelling errors; they sound like professional marketing content and can be produced on a large scale. As AI-driven scams grow more advanced and widespread, retailers face increasing pressure to optimise their fraud prevention methods.
Tackling fraud today requires finding a balance between security and providing the best customer experience, especially during peak seasons when that balance becomes even more important. Traditional fraud controls often frustrate shoppers and lead to cart abandonment. However, with AI-powered platforms like Adyen Uplift, retailers can counteract AI with AI, stopping sophisticated scams in real-time without causing friction, allowing genuine customers to check out optimally while directly managing fraud risks.
A multi-layered approach, leveraging signals such as online behaviour, transaction history, and loyalty data, can further strengthen fraud detection before issues escalate. Nearly a third (29%) of Australian retailers are already planning to invest in AI for security and fraud prevention, highlighting the growing recognition that AI-powered technology is essential to keep up with evolving threats.
For more information about Adyen, please check out their detailed profile in our dedicated, industry-specific Company Database.
