IDology’s Global Fraud Report Reveals Concerns About Next-Generation AI’s Impact on Fraud

A GBG company, ‘Idology’s Global Fraud Report, confirms growing concerns about the impact of generative AI on fraud. With rapid advances in AI, companies have expressed growing concerns about the evolution of familiar fraud types, such as synthetic identity fraud (SIF) and phishing, fueled by generative AI.

Emerging Technologies Fuel Family Fraud
Generative AI can rapidly generate human-like text, lifelike images, and even deepfake videos at scale, allowing scammers to create believable synthetic identities and phishing emails and texts with ease. Key discoveries in generative AI include:

• Many respondents cited generative AI as the top fraud trend in the next 3-5 years.
• Forty-five percent of businesses are concerned about generative AI’s ability to create more accurate synthetic identities. And with fraudsters leveraging generative AI, 74% are concerned about the potential increase in synthetic identity fraud (SIF).
• Concern about SIF doesn’t always translate into action. Despite awareness of the risk, the number of companies that are unsure whether SIF has impacted their business or are not monitoring it at all has steadily increased, from 23% in 2021 to 39% in 2024.

Mobile and online fraud remain the main targets
While scammers are leaving no stone unturned, they continue to rely on digital channels to make their biggest money.

• More than half (52%) of companies reported an overall increase in fraud across mobile, online, contact center, and in-person channels. Of these, the impact was felt most strongly in digital channels, with online and mobile accounting for 65% of the increase in fraud.
• With 70% of companies saying they plan to continue or increase investment in mobile in the next 12 months, it’s critical to balance convenience with strategies and solutions to ensure every customer experience is secure.
• As the focus on digital fraud continues, contact center and in-person channels cannot be ignored. As fraudulent payment methods, accounts, and identities exploit vulnerabilities in an interconnected system of online and offline channels, a holistic, multi-layered approach to identity verification is essential.

“From phishing scams and account takeovers to synthetic identity creation and beyond, the fraud landscape is rapidly evolving,” said James Bruni, CEO of IDology. “By leveraging generative AI and technological advances, fraudsters can scale their operations and produce output that is remarkably convincing and, in many cases, indistinguishable from human-generated content. As generative AI fuels fraud and customer expectations grow, multi-layered digital identity verification is essential to successfully balance fraud prevention with friction to drive loyalty and increase revenue.”

Now in its ninth year, this year’s Global Fraud Report was created in collaboration with GBG counterparts in Europe and Asia, with each region sharing local findings that collectively offer perspective on the changing trends in global fraud. The survey gathered quantitative insights from more than 1,200 global respondents across financial services, healthcare, travel, hospitality, lending, gaming, insurance, and e-commerce/retail. Respondents’ positions and titles included senior executives, vice presidents, directors, managers, and analysts across risk, fraud, compliance, product, customer experience, and operations.

For further insights into fraud trends across a variety of industries and first-hand perspectives shared by executives on the front lines of fraud prevention, Download the full Global Fraud Report.

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