Experian’s 2025 Fraud Forecast outlines five major threats: rising cryptocurrency scams, pig butchering schemes, viral financial fraud through social media challenges, and the evolving risks posed by Generative AI technology. The report urges businesses and consumers to strengthen fraud prevention measures and highlights the importance of consumer education amid these sophisticated challenges.
Experian has unveiled its annual Future of Fraud Forecast, highlighting five emerging fraud threats that are expected to impact businesses and consumers in 2025. The report indicates that fraudsters will continue to exploit the digital sphere and use Generative AI (GenAI) to execute sophisticated schemes quickly. Consumer alarm about online activity stands at 50%, while businesses report significant concerns about cybercrime and GenAI-related fraud.
Experian identifies key fraud trends: first, the burgeoning value of cryptocurrencies, like Bitcoin, likely makes them prime targets for fraudsters. This prediction suggests an increase in traditional scams, including fake cryptocurrency websites and romance scams, which exploit the crypto market’s volatility. Therefore, robust fraud prevention measures and consumer educational resources are essential.
Next, the report discusses “pig butchering” scams, where perpetrators build trust with victims over time to entice them into fraudulent investment schemes before vanishing with their funds. Expect enhancements in the speed and sophistication of these scams as fraudsters refine their tactics to evade detection.
Additionally, Experian warns that social media could propagate new financial fraud trends, as demonstrated by a recent viral challenge involving check fraud. Users may unknowingly participate in these schemes, highlighting a shift from traditional criminals to everyday individuals engaging in fraud under social pressures.
Lastly, the report emphasises the dangers of evolving technological threats. Kathleen Peters, Chief Innovation Officer at Experian, stresses the necessity for businesses to adopt a multifaceted strategy for fraud prevention, integrating advanced technology with ongoing consumer education. Experian’s solutions reportedly helped prevent around $15 billion in fraud losses globally over the past year. For further insights on fraud trends, interested parties can register for a webinar scheduled for February 6, 2025.
