A recent study has shed light on a worrying trend in India, revealing a sharp increase in fraudulent activities, significantly propelled by the advent of generative artificial intelligence (AI). Conducted by Forrester Consulting and commissioned by Experian, the study unveils that nearly two-thirds of respondents (64%) have reported a rise in fraud-related financial losses over the last year. A slightly higher percentage (67%) admit to struggling with the fast-paced evolution of fraud threats, which continue to outpace their preventive measures.
The financial sector appears to be the hardest hit, with organizations within this industry witnessing the most substantial escalation in fraud losses. This uptick in fraudulent activities can be attributed to several factors, including ongoing financial strains on consumers, a spate of data breaches that have funneled sensitive information into the dark web, and the emergence of publicly available generative AI technologies. These technologies have notably lowered the barrier for committing fraud by reducing the need for technical expertise.
The study emphasizes that the fraud landscape is becoming increasingly complex as technology advances. “The rise of advanced technology transforms fraud dynamics, challenging established securities, and breaking down barriers,” it notes. This transformation has led to an increase in the volume of fraud attacks across nearly all categories, with synthetic identity attacks—where attackers create new identities by merging real and fake information—seeing a particular surge, especially within the financial services sector.
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