Signicat published a report exposing the gaps in fraud defence

The study shows that businesses are onboarding customers with malicious intentions, taking on more fraud and suffering revenue losses as a result. Three in five businesses saw an increase in fraud attempts in the last year as a consequence of scammers becoming faster and smarter by utilising AI technologies and more sophisticated techniques. Based on the data detected by Signicat, fraud attempts increased to 88% from 2021 to 2024, and identity fraud attempts in particular are up 69%.

Identity fraud is becoming a bigger threat for businesses globally

Vulnerable points detected by the company include the transaction stage, which is the most exposed, with 40% of identity fraud attempts happening at this stage. Attackers primarily target customers, followed closely by weaknesses in technology systems.

22% of annual revenue is impacted by identity fraud and the costly process to prevent it. However, less than half of businesses are actively and constantly measuring the impact of identity fraud on their operations, which makes the consequences unclear to them, prompting them not to take action.

Without appreciating the threat that they are under, 74% of businesses believe they are winning the battle against fraud, ignoring dangers that put themselves and their customers at risk, as well as the wider economy.

Meanwhile, fraudsters are changing tactics and strategies rapidly to adapt to new fraud prevention technologies. To win, businesses must be just as adaptable, focusing their efforts where fraudsters are most effective.

Signicat’s report highlights the need for businesses to improve fraud measurement and reporting, and to rethink their fraud prevention models accordingly. AI is making existing fraud types more complex and harder to detect, and this can lead to more revenue loss from old fraud schemes powered by new technology.