A new report from Experian, a global data and technology company, reveals that over a third of U.S. companies are now leveraging artificial intelligence, including generative AI, in their fraud prevention efforts, as businesses and consumers alike face increasingly complex threats.
The 2025 U.S. Identity and Fraud Report indicates that 33% of companies are utilizing AI to combat fraud. With fraud threats growing in complexity, over half of businesses are accelerating their investments by adopting new analytics and developing AI models to enhance customer decision-making. The report also highlights a significant concern regarding AI-generated fraud and deepfakes, with 72% of business leaders anticipating these to be major challenges by 2026. Despite businesses’ increasing embrace of AI for fraud prevention, consumer trust remains low; less than 25% report interacting with AI-driven tools like chatbots, and only 18% completely trust these solutions.
Kathleen Peters, Chief Innovation Officer at Experian North America, stated, “With the widespread use of generative AI, fraud is evolving faster than many businesses can keep up with. 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.”
The report details rising fraud concerns for both businesses and consumers. Ninety percent of businesses expressed concern about fraud, and 70% reported increasing their fraud prevention budgets. Nearly 60% of companies experienced a year-over-year increase in fraud losses, with identity theft, transactional payment fraud, account takeover, peer-to-peer payment scams, and first-party fraud identified as the most common fraud events last year. Concurrently, 57% of consumers remain concerned about online activities, citing fears such as identity theft, stolen credit card information, online privacy, fake/phishing emails or messages, and false information. The Federal Trade Commission (FTC) reported that consumers lost a record $12.5 billion to fraud in 2024, a 25% increase from the previous year.
These concerns are driving higher customer expectations for businesses regarding online safety. Over 80% of consumers expect companies to address security or privacy concerns, and half desire stronger online safeguards. While 85% of businesses believe their fraud controls align with consumer expectations, less than 50% of consumers highly trust companies to address their online concerns. This disconnect is exacerbated by businesses’ continued reliance on verification methods like passwords and PINs, while more secure methods favored by consumers, such as biometrics and behavioral analytics, remain underutilized. This highlights a need for organizations to invest in innovative fraud prevention methods that meet consumer expectations and to communicate clearly to foster greater security and confidence.
Experian’s identity verification and fraud prevention solutions reportedly helped clients avoid an estimated $19 billion in fraud losses globally last year. The 2025 Experian Identity and Fraud Report, now in its tenth year, is based on two U.S. surveys conducted in March and April 2025. One surveyed over 2,000 U.S. consumers about their online interactions and expectations regarding security and customer experience. The second surveyed over 200 U.S. businesses on their strategies for fraud management, customer identification, and authentication, including investments related to security and customer experience. Participating companies ranged in revenue from $10 million to over $1 billion and represented industries such as retail banking, fintech, consumer technology, electronics, and payment system providers.
Experian, a global data and technology company, works to redefine lending practices, prevent fraud, simplify healthcare, deliver digital marketing solutions, and provide automotive market insights through its data, analytics, and software. The company also supports individuals in achieving financial goals. Operating across sectors including financial services, healthcare, automotive, agrifinance, and insurance, Experian invests in advanced technologies and a team of 25,200 people across 32 countries. Experian’s corporate headquarters are in Dublin, Ireland, and it is a FTSE 100 Index company listed on the London Stock Exchange (EXPN).
