GBG IDology has released a Global Fraud Report which shows increasing concerns about the impact of generative AI on fraud. With the rapid progress in AI, businesses have become increasingly worried about the evolution of well-known fraud types, such as synthetic identity fraud (SIF) and phishing, driven by generative AI.

This technology can produce human-like text, realistic images, and even deepfake videos on a large scale, making it easier for fraudsters to fabricate convincing synthetic identities and phishing emails and texts. 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 Over half (52%) of companies have seen an overall increase in fraud across mobile, online, contact center, and in-person channels. The most significant impact has been in digital channels, with online and mobile fraud making up 65% of this rise.  With 70% of companies planning to maintain or increase their investment in mobile over the next year, it is crucial to balance convenience with robust security measures to ensure safe customer experiences.  Despite the focus on digital fraud, contact center and in-person channels should not be overlooked.

Fraudulent activities exploit vulnerabilities across both online and offline systems, necessitating a comprehensive, multi-layered approach to identity verification. According to the announcement, 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. .