New data shows AI-driven fraud surges, professionals unprepared

Artificial intelligence (AI) is reshaping the landscape of fraud, causing concern among anti-fraud professionals as AI-driven deception becomes more prevalent.

Recent research from the Association of Certified Fraud Examiners (ACFE) and SAS found that the majority of experts have observed a significant surge in AI-powered fraud, with most feeling their organisations lack the tools and knowledge to address the challenges effectively.

Rising AI fraud

The report indicates that 77 per cent of anti-fraud professionals saw an acceleration of deepfake-driven social engineering over the past two years. Additionally, 83 per cent expect these types of schemes to increase further, with escalation ranging from moderate to significant. Despite the rising threat, fewer than 10 per cent of specialists feel well prepared to respond to such incidents.

"Artificial intelligence has become one of the most powerful tools in business - and one of its most potent threats," said John Gill, President, Association of Certified Fraud Examiners. "Awareness is our best defence as new risks continue to evolve. Educating professionals, equipping government and industry and empowering the public to recognise the AI-guided threats proliferating unseen is vital to maintaining trust and building confidence for what lies ahead."

Identity verification

Some organisations are boosting their defences with advanced technologies. BankID, Norway's national digital identity provider, authenticates more than 4.6 million users and processes nearly a billion transactions annually. The service has started integrating identity and authentication signals, such as device metadata and signing behaviour, into SAS' real-time fraud scoring systems.

According to SAS, this development is intended to bolster anomaly detection, improve risk-scoring accuracy, and provide stronger protection against account takeover and synthetic identity fraud.

"BankID goes beyond identity protection - it powers intelligent fraud prevention. By combining our identity signals with SAS' AI-driven fraud analytics, we've moved from reacting to fraud to anticipating it. The result is smarter real-time detection and fewer false positives, enabling faster, more confident decisions that protect both users and trust at a national scale," said David Sæle, Product Manager, BankID Anti-Fraud.

Public benefits oversight

In the United States, one large southern state expanded its use of machine learning in payment integrity for the Supplemental Nutrition Assistance Program (SNAP). The technology risk-scores overpayment referrals, helping staff prioritise investigations and reduce case processing times. This use of analytics not only improves detection but also addresses resource limitations. A representative from the SNAP program said it saw a 50 per cent reduction in investigation processing time.

Ongoing vigilance

Anti-fraud professionals remain attentive as the pace and sophistication of AI-powered fraud continue to grow. SAS stated the industry consensus underscores the need to combine education, policy, and technological investment to counter emerging risks.

"AI is blurring the boundary between truth and imitation, with untold billions at stake," said Stu Bradley, Senior Vice President of Risk, Fraud and Compliance Solutions, SAS.