With generative AI enabling fraud-as-a-service at scale, legacy defenses are crumbling. The next wave of cybercrime is faster, smarter, and terrifyingly synthetic
The rising tide of AI is lifting all fraud – the current situation is bad and getting worse.
Proof’s Transaction & Identity Fraud Bulletin (PDF) highlights and explains a surge in cyber-driven fraud. The primary causes are the growth of personal data on the internet (from sources such as social media), the ability of AI to harvest and collate that data, and the emergence of fraud-as-a-service turbo-charged by AI.
“Fraud today doesn’t look like it did five years ago. It’s synthetic, it’s autonomous, and it’s scaling,” comments Pat Kinsel, CEO of Proof. “We’re seeing high-risk interactions involving billions in assets… trust must now be engineered in a world where identity can be convincingly faked and monetized at scale.”
The potential threat is daunting. Deloitte’s Center for Financial Services has predicted that gen-AI could enable fraud losses to reach $40 billion in the United States by 2027, up from $12.3 billion in 2023 at a compound annual growth rate of 32%.
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