IDology Unveils Global Fraud Report, Reveals Growing Concerns About Generative AI's Impact on Fraud

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Jun 25, 2024, 08:30 ET

Digital channels continue to be a top target for fraudsters while generative AI becomes another tool in their arsenal

ATLANTA, June 25, 2024 /PRNewswire/ -- IDology, a GBG Company, today released its 2024 Global Fraud Report, confirming increasing concerns about the impact of generative AI on fraud. With rapid advancements in AI, businesses expressed heightened concerns about the evolution of familiar types of fraud—such as synthetic identity fraud (SIF) and phishing—fueled by generative AI.

Emerging Tech Fuels Familiar Fraud
Generative AI can quickly turn out human-like text, realistic images, and even deepfake videos at scale, allowing fraudsters to create believable synthetic identities and phishing emails and texts with ease. Key findings related to generative AI include:

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.

Mobile and Online Fraud Remain Top Targets
While fraudsters leave no stone unturned, they continue to hedge their biggest bets on digital channels.

More than half (52%) of companies reported an overall increase in fraud across mobile, online, contact center, and in-person channels. Of those, the impact was felt the most in digital channels, with online and mobile accounting for 65% of the increase in fraud.
70% of companies report a continued or higher investment in mobile over the next 12 months, making it mission-critical to balance convenience with strategies and solutions to ensure every customer experience is secure.
While the focus on digital fraud continues, contact center and in-person channels can't 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 the creation of synthetic identities and beyond, the fraud landscape is evolving fast," said James Bruni, managing director of IDology. "Tapping into generative AI and technology advances, fraudsters can scale their operations and produce outputs that are remarkably convincing and, in many cases, indistinguishable from content created by humans. As generative AI fuels fraud and customer expectations grow, multi-layered digital identity verification is essential for successfully balancing fraud prevention with friction to drive loyalty and grow 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 a perspective on shifting global fraud trends. The survey gathered quantitative information from over 1,200 respondents globally across financial services, healthcare, travel, hospitality, lending, gaming, insurance and e-commerce/retail sectors. Positions and titles of respondents include senior leadership, vice presidents, directors, managers and analysts in risk, fraud, compliance, product, customer experience and operations departments.

For additional insights into fraud trends across a variety of industries and firsthand perspectives shared by executives on the front lines of fraud prevention, download the full Global Fraud Report.

About IDology
IDology, a GBG company and market leader in the Americas, delivers a comprehensive suite of identity verification, AML/KYC compliance and fraud management solutions to help businesses establish trust, drive revenue and deter fraud. We deliver end-to-end coverage of the customer identity lifecycle, offering standalone and multi-layered capabilities, with thousands of diverse data sources and leading technology for document authentication and ID + selfie verification. Our solutions are trusted to onboard more genuine customers faster and can be implemented quickly to seamlessly and securely verify identities around the world – with confidence. For more information, visit www.IDology.com.

Media Contact:
Kathy Berardi
Carabiner Communications
678.644.4122
[email protected]

SOURCE GBG IDology