Veriff Fraud Industry Pulse Survey - Key Findings

Fraud is a growing problem for US decision-makers

Fraud is a major threat for business leaders in key sectors of the US digital economy. Almost 87% saw an increase in online fraud in the year, while just 1.19% of respondents said they experienced zero fraudulent identity fraud attempts. 

The vast majority of respondents have suffered at least some hit to their revenue because of fraud. For almost 90%, it caused a revenue hit of between 1% and 9%. In fact, just 6.96% of respondents said they had felt no impact on revenue from such criminal behaviour. 

To highlight the extent of this problem, the percentage figures are worth converting into dollars. If a company has an annual revenue of $100 million, they could be losing up to $9 million a year from fraud.

These results aren’t surprising, and US business leaders are far from alone: it’s a global problem. Veriff’s Identity Fraud Report 2024 found a 20% rise in overall fraud year-on-year since the previous report. 

Customers see the danger – and demand action

Across key sectors, customers are paying attention. Over 86% of US fraud decision-makers say their customers are now more demanding when it comes to robust fraud prevention capabilities. 

This speaks to the widespread nature of the growing danger from fraud and echoes the results of wider research. For example, the Veriff Fraud Index 2024 surveyed 1,000 end users or consumers across the US and Europe, and found that 75% said they consider a company's record on fraud prevention before signing up to a service. 

AI is a growing threat – but also an opportunity

AI has been weaponized by fraudsters. Almost 78% of US decision-makers have seen an increase in the use of AI in fraudulent attacks over the past year, according to our survey. 
On the other hand, it is being used increasingly in defense: nearly 79% are using AI and ML in fraud prevention already. Decision-makers appreciate the benefits of AI in the fight against fraud, from identifying fraud patterns (69.38%) to automating the IDV process for more robust checks (57.85%). 

Fraud teams are fighting back

Decision-makers are taking steps to secure their organizations. Less than 1% say they’re very unprepared and face considerable risk of attack. At the other end of the scale, about a third (32.21%) believe they are very prepared and face no risk of attack

However, the data suggests that two-thirds of US decision-makers think their firms could be doing more. Most respondents (56.06%) say they are somewhat prepared and face little risk of attack, while a further 10.34% say they are somewhat unprepared and face quite a few risks of attack. 

Still, there is clear momentum for action, particularly when it comes to technology. US decision-makers see the benefits of AI as a tool to protect their businesses and their customers. When it comes to identity verification (IDV) and biometrics, about 96% plan to increase either or both in the next year. 

The survey presents some worrying findings, highlighting a growing danger to US businesses from online criminals. However, the results are also encouraging, showing a burgeoning awareness of the danger and a desire to address the problem using AI, IDV and biometrics.