Experian’s 2024 Report: Surge in GenAI-Driven Personalized Fraud

Businesses Must Employ a Multi-Layered Approach to Fight GenAI Fraud

Experian announced its 2024 Global Identity & Fraud Report that provides a comprehensive view of the consumer and business response to the latest fraud patterns and fraud‑mitigation strategies in the worldwide financial services sector. The report offers combined insights from more than 1,000 businesses and fraud leaders globally, as well as 4,000 consumers, focusing on fraud management and the digital experience.

Among its key insights, the report casts a bright spotlight on three factors driving the fast-evolving fraud landscape: the huge growth in Generative Artificial Intelligence (GenAI) technologies, changing government regulations, and the push among businesses to provide consumers with secure and convenient digital experiences. In response to these factors, the report’s findings revealed that businesses intend to increase fraud budgets driven by investments in AI and machine learning technologies.

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“Unlike other issues facing financial services companies, fraud operates beyond geographical boundaries or regulatory frameworks, and fraudsters often attack different points across the consumer journey,” said Greg Wright, Executive Vice President of Identity and Fraud at Experian. “This unfortunate reality compels businesses to leverage advanced analytics, alternative data insights, data sharing, and a multi-layered approach to combat evolving fraud threats globally.”

On the consumer side, report data indicates that striking the right balance between fraud protection and a positive customer experience is critically important, due to the high percentage of global consumers who stated that they have moved their business elsewhere due to a poor account opening or slow transactional experience.

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These findings underscore that businesses worldwide face the same challenge: authenticating customers requires balancing security with a seamless customer experience to prevent them from abandoning an application or purchase process. The solution is to leverage analytics and orchestrate fraud-prevention routines for a 360‑degree view of customers, mitigating fraud and offering a seamless customer experience.

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Source – Businesswire

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