Fraud losses increased for nearly 60% of companies, while over half of consumers are still concerned about doing things online

Experian^®, a global data and technology company, today released its 2025 U.S. Identity and Fraud Report revealing over a third of companies say they are using AI, including generative AI, to fight fraud. As fraud threats grow increasingly complex, companies are accelerating their investments with over half adopting new analytics and building AI models to enhance customer decision-making.

The report also highlights growing concern over AI-generated fraud and deepfakes with 72% of business leaders expecting these to be major challenges by 2026. While some businesses are more open to embracing AI for fraud prevention, consumer trust remains low. Less than 1 in 4 report interacting with AI-driven tools like chatbots, and just 18% completely trust these tools.

“With the widespread use of generative AI, fraud is evolving faster than many businesses can keep up with,” said Kathleen Peters, Chief Innovation Officer, Experian North America. “As a trusted partner to organizations across diverse industries, we take a proactive approach to fraud prevention — combining data, advanced analytics and innovative technology to address both emerging and future threats. We’re committed to ensuring the delivery of seamless user experiences while fostering trust at every interaction.”

Rising fraud concerns for businesses and consumers

This year’s data shows that businesses are feeling the pressure with 90% reporting concern about fraud and 70% saying they are increasing their fraud prevention budgets. In fact, nearly 60% of companies reported an increase in their fraud losses year-over-year with identity theft, transactional payment fraud, account takeover, peer-to-peer payment scams and first-party fraud identified as the top fraud events experienced last year.

At the same time, 57% of consumers are still concerned about doing things online. Their top fears include identity theft, stolen credit card information, online privacy, fake/phishing emails, messages or phone scams, and false information. In fact, according to the FTC, consumers reported losing a record $12.5 billion in fraud losses in 2024, which is a 25% increase from the previous year.

The need for modern fraud detection

As a result of these concerns, customers are raising their expectations for businesses when it comes to keeping them safe online. Over 80% expect companies to act on security or privacy concerns, and half want stronger online safeguards. While 85% of businesses believe their fraud controls align with consumer expectations, less than half of people are highly trusting of companies to address their concerns online.

At the same time, businesses are still relying on verification methods like passwords and PINs, while more secure methods that people say make them feel safest, like biometrics and behavioral analytics, remain underused. This disconnect highlights the need for organizations to not only invest in innovative fraud prevention methods that meet consumers’ expectations but also communicate clearly and consistently so their customers can feel more secure and confident.

Last year, Experian’s identity verification and fraud prevention solutions helped clients avoid an estimated $19 billion in fraud losses globally. To learn more, register for Experian’s 2025 Fraud Trends webinar on July 31 at 10 a.m. PT here.

Methodology: The 2025 Experian Identity and Fraud Report, now in its 10th year, is based on two major surveys conducted in the U.S. in March and April of 2025. The first asked more than 2,000 U.S. consumers about their online interactions and expectations regarding security and customer experience. The second survey asked more than 200 businesses in the U.S. about their strategies for effective fraud management, customer identification and authentication, including investments related to security and customer experience. Companies ranged in size from $10-$49 million to above $1 billion in revenue. Industries that completed the survey include retail banks, fintechs, consumer technology and electronics, payment system providers, and many other companies from a range of verticals.

About Experian

Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and software. We also assist millions of people to realise their financial goals and help them to save time and money.

We operate across a range of markets, from financial services to healthcare, automotive, agrifinance, insurance, and many more industry segments.

We invest in talented people and new advanced technologies to unlock the power of data and innovate. As a FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 25,200 people across 32 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com.

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