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Fraud Escalation Outpaces Business Defences, Warns New Experian Report
Alarming Increase in Fraud Losses
Experian’s latest global study reveals a worrying trend: 64% of businesses in EMEA and Asia Pacific report a spike in fraud losses. Conducted by Forrester Consulting, this research highlights the widening gap in fraud prevention, exacerbated by criminals employing sophisticated, AI-enabled attacks. Despite valiant efforts, 68% admit their current security measures lag behind.
Technology Gaps Slow Response
The challenge is clear: traditional methods struggle to keep up. An astonishing 71% of businesses spend more on fraud tech than on human analysts. This shift underscores the inadequacy of manual reviews and rules-based systems. It’s time to modernise, yet the age-old ‘build-vs-buy’ debate hinders swift action.
Modernising through Machine Learning
Seven in ten consider revamping fraud solutions their top priority. Migrating systems to the cloud and integrating new tools are also crucial. Device and behavioural data are now fundamental for accurate fraud detection. Machine learning (ML) becomes indispensable. Around 67% who’ve implemented ML report better detection accuracy.
| Key Advantage | Percentage of Respondents |
|---|---|
| Real-time Detection | 54% |
| Ability to Retrain Models | 70% |
Sector-Specific Trends
The report examines trends across various sectors. In Financial Services and Telcos, social engineering and identity theft are rampant. Meanwhile, eCommerce grapples with friendly fraud and refund abuses. This insight helps businesses tailor their defence strategies effectively.
Collaboration is the Future
Fraud prevention is not a lone battle. Nearly 73% of firms agree on the importance of sharing fraud intelligence. Trust and a secure infrastructure are essential. Through centrally managed hubs and API connections, Experian fosters collaboration, ensuring both security and regulatory compliance.
Experian’s Commitment
Experian, a leader in data and technology, is at the forefront of these efforts. With headquarters in Dublin and a presence in 33 countries, Experian empowers businesses and individuals alike. They drive innovations across financial services, healthcare, and more, always using their unique mix of data and analytics.
The Road Ahead
Shail Deep, COO of Experian EMEA & APAC, encapsulates the urgency: “Fraud is ever-evolving. Businesses must modernise their strategies now. Device intelligence, behavioural analytics, and machine learning are essential. Collaboration and innovation form the bedrock of resilience.”
Methodology
Experian’s findings are based on a survey of 979 senior fraud leaders in nine countries: Australia, Denmark, Germany, India, Italy, New Zealand, Norway, South Africa, and Spain. Conducted in July 2025, this research aims to grasp the major trends affecting fraud prevention.
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