New Delhi, India March 19 : The advent of Artificial Intelligence (AI) has amplified fraud activities with over 52 per cent of companies in India seeing an increase in losses from fraud attacks in the past one year, according to the data and technology firm Experian.
The report observes that about 85 per cent of businesses in India agree that because of the GenAI the individual fraudsters have become a highly organised fraud syndicates.
The report by the firm says that GenAI has also enabled the "industrialisation of fraud," where fraudsters create and deploy fake identities, deepfakes, and other fraud tactics on a large scale.
As a result, 50 per cent of businesses struggle to detect the involvement of GenAI in fraud attacks and to assess its impact on losses. To counter this, businesses must adopt advanced AI-driven fraud prevention tools, integrate multiple security solutions, and adopt smarter fraud orchestration strategiesensuring better detection, stronger security, and reduced costs.
According to the report, in India, 77 per cent of fraud decision-makers acknowledge that partnering with external entities is essential for effective fraud prevention.
Additionally, 61 per cent agree that sharing fraud data through a consortium is an effective strategy to identify emerging fraud trends.
Notably, 74 per cent of Indian businesses have reported a positive return on investment from participating in such consortia, highlighting the benefits of collaborative efforts.
The report highlights that about 48 Indian companies face challenges in implementing ML models due to insufficient training data, and 60 per cent report a lack of quality data.
According to Shail Deep, Chief Operating Officer (COO), Experian EMEA & APAC, as we look ahead, the integration of ML-based fraud prevention is a necessity for businesses to fight back against today's sophisticated fraud threat.
"Our research indicates that 85 per cent of Fraud experts believe the fraud landscape has been dramatically changed by Generative AI. As a result, over 52 per cent have seen an increase in losses from fraud attacks in the past year," he added.
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