Fighting Digital Fraud: What Global Finance Must Do in 2025

As more transactions go digital, global finance is faced with escalating fraud threats that need urgent addressing. Fraud, in 2025, will cost businesses over 5% of revenue as fraudsters use more advanced methods like synthetic identity fraud and AI-driven scams. In response to this, financial instit...

As more transactions go digital, global finance is faced with escalating fraud threats that need urgent addressing. Fraud, in 2025, will cost businesses over 5% of revenue as fraudsters use more advanced methods like synthetic identity fraud and AI-driven scams. In response to this, financial institutions are prioritizing: • AI-Powered Solutions: 76% of companies are investing in machine learning and AI for real-time transaction monitoring and predictive fraud detection. • Regulatory Compliance: Laws like the EU's Digital Operational Resilience Act (DORA) mandate robust cybersecurity controls and third-party risk management. • Collaborative Models: Shared Responsibility Models (e.g., Singapore) offer accountability among telcos, banks, and consumers. It requires an integrated approach involving AI, big data, and cross-industry collaboration to stay ahead of the fraudsters. As regulations become increasingly stringent across the globe, financial institutions must innovate to safeguard trust in the digital economy. Source: SEON, LSEG Risk Intelligence, Hogan Lovells