The study surveyed nearly 1,000 senior fraud leaders from nine countries, including India, and it underscores a growing gap between sophisticated fraud methods and organizations’ readiness.
Technology deficiencies hinder response to increasing threats
Most Indian organizations admit that their current systems are inadequate. Approximately 69% of respondents stated that their existing technology stack cannot adequately address the rapidly changing fraud risks, especially as attacks become faster, more affordable, and scalable.
The report emphasizes that identity verification systems have emerged as the primary targets for vulnerabilities, particularly as fraudsters utilize increasingly advanced tools, such as generative AI. Despite this fact, many companies remain entangled in extended “build versus buy” debates, causing delays in essential upgrades.
Simultaneously, 64% of organizations are progressing toward merging fraud prevention with credit risk assessment into a comprehensive risk management strategy, indicating a transition to more integrated frameworks.
AI and machine learning yield observable benefits
While challenges continue to exist, firms that have embraced artificial intelligence and machine learning are experiencing notable advantages. About 54% of respondents indicated enhanced fraud detection accuracy following AI implementation, and half reported that machine learning aided in identifying fraud cases that conventional rules-based systems would have overlooked.
Real-time detection and the capacity for continuous model retraining were identified as major strengths. Furthermore, 65% of fraud leaders stated that machine learning enhances prioritization for manual reviews, ultimately boosting operational efficiency.
However, significant capability gaps persist. Nearly 76% of Indian organizations noted a lack of in-house expertise to develop or oversee machine learning models, highlighting an increasing reliance on external solutions and partnerships.
GenAI becomes a prominent threat vector
The emergence of generative AI is raising alarms across various sectors. Approximately 65% of respondents labeled GenAI as the most substantial fraud threat to date, with 74% observing a noticeable rise in AI-driven fraud attempts.
Current safeguards seem ill-prepared for this evolution. Nearly 69% of organizations reported that their existing KYC and identity verification systems struggle to effectively detect AI-generated documents. More than half acknowledged challenges in identifying whether GenAI played a role in specific fraud incidents, complicating the assessment of the issue’s scale.
Sector-specific vulnerabilities and increasing complexity
The report highlights a rise in social engineering and identity theft particularly in the financial services and telecom industries, while e-commerce companies are facing escalating cases of friendly fraud and refund abuse.
These developments indicate a broader transition towards more organized, transnational fraud networks that capitalize on automation and AI technologies to enhance their operations.
Collaboration and shared intelligence become crucial
As fraud becomes more intricate, businesses are increasingly seeking resources beyond their internal capabilities. About 63% of respondents noted that tangible returns from peer networks could expedite the adoption of shared fraud intelligence systems.
There is also a growing interest in low-friction solutions like behavioral analytics and device intelligence, with 83% of organizations expressing readiness to embrace passive fraud detection techniques that do not disrupt customer interactions.
A structural transformation in fraud prevention
The findings suggest a shift in fraud prevention from a reactive, rules-based framework to a more dynamic, intelligence-driven approach. With 71% of businesses investing more in fraud technology than in human analysts, the focus is transitioning towards automation, real-time insights, and collaborative ecosystems.
The report indicates that as digital adoption speeds up, especially in markets like India, the capacity to modernize fraud defenses will be essential for maintaining trust and fostering growth in the digital economy.
