MUMBAI: Experian, has released its latest research, offering insights into how Generative AI (GenAI) is reshaping the fraud landscape. Conducted by Forrester Consulting, the study surveyed 449 senior fraud protection professionals across multiple countries, including India, uncovering a surge in fraud losses due to identity theft and the critical need for AI-driven security measures.
The report highlights a shift from individual fraudsters to organised crime syndicates, with GenAI accelerating this transformation. In India, 85 per cent of businesses agree that GenAI has permanently altered the fraud landscape, making attacks more complex. The rapid industrialisation of fraud enables criminals to mass-produce deepfakes, synthetic identities, and large-scale scams. Alarmingly, 50 per cent of firms struggle to detect GenAI-driven fraud or quantify its financial impact. To counter this, businesses must implement AI-powered fraud prevention tools, adopt integrated security measures, and enhance fraud orchestration strategies to bolster detection and reduce costs.
As fraud tactics evolve, businesses are recognising the need for external collaboration and advanced fraud prevention technologies. In India, 77 per cent of fraud decision-makers stress that partnerships with external organisations are vital for tackling fraud effectively. Additionally, 61 per cent support data-sharing consortia as an effective method for tracking emerging fraud trends. Encouragingly, 74 per cent of Indian firms report a positive return on investment from participating in such initiatives, underlining the benefits of collective action.
The study underscores the importance of integrating diverse data sources into supervised and unsupervised Machine Learning (ML) models to enhance fraud detection. However, 48 per cent of Indian firms struggle with ML implementation due to a lack of training data, while 60 per cent cite poor data quality as a barrier. Developing in-house ML models is complex, making customisable, off-the-shelf ML solutions a faster and more effective alternative.
Experian India country managing director Manish Jain commented, "At Experian, we are committed to staying ahead of emerging threats by leveraging advanced technology, data analytics, and industry consortia. Our ML-based tools, such as the Mule Risk Indicator, integrate traditional and non-traditional data points to help financial institutions identify and mitigate fraud. By promoting these advanced solutions, we empower businesses to navigate an increasingly complex fraud landscape while ensuring data security."
Experian EMEA & APAC chief operating officer Shail Deep, added, "The integration of ML-driven fraud prevention is no longer optional our research shows that 85 per cent of fraud experts believe GenAI has fundamentally altered the threat landscape, with over 52 per cent reporting increased fraud losses in the past year. Businesses must act now by adopting flexible, cutting-edge fraud prevention tools. At Experian, we remain focused on innovation, ensuring our technology continues to strengthen detection capabilities and create a safer digital environment for clients and consumers alike."
