Experian Report Warns of Rising GenAI-Driven Fraud, Urges Faster Adoption of ML-Based Defences

Mumbai, 15 April 2026: Experian has released new findings from its latest fraud research report, conducted by Forrester Consulting, highlighting a growing gap between increasingly sophisticated fraud attacks and the ability of businesses to defend against them.

The study surveyed nearly 1,000 senior fraud leaders across nine countries, including India, and revealed that fraud is becoming faster, cheaper, and more scalable—largely driven by organised global networks and the rise of Generative AI (GenAI).

Sector-Wise Fraud Trends Emerging

The report identifies sharp increases in:

• Social engineering and identity theft in financial services and telecom sectors
• Friendly fraud and refund abuse in eCommerce

Identity verification systems are now the most targeted layer of security, making them particularly vulnerable.

Indian Businesses Struggling to Keep Pace

A significant 69% of Indian organisations believe their fraud prevention technologies require major upgrades. However, many are stuck in prolonged “build vs. buy” debates, delaying necessary improvements.

At the same time:

• 83% are interested in passive fraud detection methods like behavioural and device intelligence
• 64% plan to integrate fraud prevention with credit risk assessment systems

Machine Learning Becomes Core Defence Tool

Machine Learning (ML) is emerging as a key weapon against fraud:

• 54% of ML users report improved detection accuracy
• 65% say ML helps prioritise fraud cases more effectively
• 55% highlight real-time detection as ML’s biggest advantage

Half of respondents believe ML can identify fraud patterns missed by traditional rule-based systems.

Collaboration & Shared Intelligence Gaining Importance

Despite growing ML adoption:

• 76% of Indian firms need stronger in-house ML expertise
• 74% plan to integrate ML into fraud workflows

Additionally, 63% say shared fraud intelligence and proven ROI from peer networks would accelerate adoption.

GenAI: The Biggest Emerging Threat

Businesses are increasingly alarmed by GenAI-driven fraud:

• 65% call it the most significant fraud threat ever
• 69% say current KYC systems cannot detect AI-generated documents
• 74% report a rise in GenAI-based fraud attempts
• 57% struggle to confirm whether fraud involves AI

Many respondents believe current incidents represent only the “tip of the iceberg.”

Leadership Perspective

“Fraud was never a static challenge, it’s constantly evolving Generative AI is giving criminals unprecedented speed and sophistication. Businesses must modernise their fraud strategies now. Today, 71% of businesses are investing more in fraud technology than in human analysts, a clear signal that manual reviews and rules-based systems can no longer keep up. Device intelligence, behavioural analytics, and machine learning are becoming essential. Collaboration and innovation are no longer optional; they are the foundation of resilience in 2026 and beyond. ” Shail Deep, COO, Experian EMEA & APAC.

“Fraud has entered a new era driven by economic volatility, organised networks, and Generative AI. Indian businesses must modernise rapidly with machine learning, behavioural analytics, and shared fraud networks to stay ahead.” - Manish Jain, Country Managing Director, Experian India

Methodology

Experian’s report is based on a survey of 979 senior fraud decision-makers in Financial Services, Telcos and eCommerce across nine countries: India, Australia, Denmark, Germany, Italy, New Zealand, Norway, South Africa and Spain. The research was conducted by Forrester Consulting in July 2025 to understand the big trends impacting fraud prevention.

About Experian

Experian is a global data and technology company operating across financial services, healthcare, automotive, and more. A constituent of the FTSE 100 Index, the company employs over 25,000 people across 33 countries, with headquarters in Dublin, Ireland.

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