Artificial Intelligence (AI)-driven fraud attacks have surged in India, with over 52% of companies reporting increased financial losses in the past year, according to a report by Experian. The report highlights how generative AI (GenAI) is enabling fraud syndicates, making fraud detection and prevention more challenging.
Artificial Intelligence (AI) is driving a surge in financial fraud, with more than 52% of Indian companies experiencing increased losses over the past year, according to a report by Experian, a global data and technology firm specializing in credit reporting and fraud prevention.
The report highlights that generative AI (GenAI) is fueling the rise of organized fraud syndicates, enabling cybercriminals to create fake identities, deepfakes, and large-scale fraud schemes. Around 85% of businesses in India acknowledge that GenAI has significantly altered the fraud landscape, making it more sophisticated and difficult to detect.
Challenges in AI Fraud Detection
Half of the businesses surveyed struggle to identify fraud attacks involving GenAI and assess their financial impact. Companies are urged to adopt AI-driven fraud prevention tools, integrate advanced security solutions, and implement fraud orchestration strategies to mitigate losses.
Additionally, 77% of fraud decision-makers in India emphasize the importance of external partnerships for effective fraud prevention, while 61% believe sharing fraud data through industry consortia can help identify emerging fraud trends. Notably, 74% of Indian businesses report a positive return on investment from participating in such collaborative efforts.
Lack of Quality Data Hampers AI Fraud Prevention
Despite the growing need for AI-based fraud prevention, 48% of Indian companies report challenges in implementing machine learning models due to inadequate training data, while 60% cite a lack of high-quality data.
As fraud tactics evolve, businesses must adopt machine learning-based fraud prevention strategies to combat sophisticated AI-driven threats. Our research shows that 85% of fraud experts believe GenAI has transformed the fraud landscape, contributing to the increased financial losses seen by over 52% of businesses.”
Shail Deep, Chief Operating Officer of Experian EMEA & APAC
As fraudsters continue to leverage AI to conduct large-scale financial crimes, Indian businesses face mounting pressure to enhance security measures, collaborate on fraud prevention strategies, and invest in advanced AI-driven fraud detection technologies.
