Fraudsters are evolving faster than ever, leveraging cutting-edge technologies like Generative AI (GenAI) to develop increasingly sophisticated schemes.
Experian’s 2025 Future of Fraud Forecast reveals five emerging fraud threats that businesses and consumers must prepare for in the coming year.
As digital transactions become the norm, cybercriminals are exploiting new vulnerabilities at scale, making fraud prevention a critical priority.
According to Experian, 75% of companies are most concerned about cybercrime, with 70% specifically worried about GenAI-driven fraud and deepfakes.
These concerns highlight the urgent need for robust fraud prevention strategies.
Below, we explore the key fraud threats of 2025 and what businesses can do to mitigate them.
Crypto Scams Surge as Market Volatility Increases
The cryptocurrency market continues to see dramatic highs and lows, with Bitcoin and other digital assets experiencing surging valuations.
As crypto prices soar, scammers are increasingly targeting investors and providers through fraudulent investment schemes, fake websites and romance scams.
Crypto scams often lure victims with promises of quick profits and exclusive investment opportunities, only to steal their funds.
Phishing attacks and impersonation scams have become more sophisticated, making it harder for users to distinguish real platforms from fake ones.
How Businesses Can Respond:
- Enhance identity verification processes for crypto transactions.
- Educate consumers on identifying fraudulent crypto schemes.
- Implement AI-driven fraud detection to spot suspicious activity.
Pig Butchering Scams Become More Sophisticated
Named after the practice of “fattening up” victims before a major financial hit, pig butchering scams have gained traction in online fraud.
Scammers establish long-term trust with victims, often through social media or messaging platforms, before persuading them to invest in fake ventures.
Experian warns that GenAI will accelerate the success rate of these scams by improving fake identities and making communications seem more authentic.
These scams are particularly dangerous because they don’t just steal small amounts – they often wipe out entire life savings before disappearing.
How Businesses Can Respond:
- Monitor large transactions for unusual patterns.
- Use behavioural analytics to detect sudden shifts in user activity.
- Educate customers on how to spot long-term investment scams.
Social Media Challenges Turn Everyday Users into Fraudsters
Social media has been responsible for launching viral trends, but Experian predicts that fraud-related challenges will also rise.
In 2024, a viral social media scheme encouraged users to deposit bad checks at ATMs and withdraw funds before they bounced – an act of check fraud that many participants didn’t realise was illegal.
As digital payments continue to dominate, fraudsters could introduce new financial scams disguised as “challenges,” recruiting everyday users to participate in illegal activities unknowingly.
How Businesses Can Respond:
- Work with social media platforms to detect and remove fraud-related content.
- Enhance fraud analytics to detect suspicious patterns in transactions.
- Run awareness campaigns about financial scams on social media.
GenAI-Powered Password Spraying Attacks on Healthcare Providers
With healthcare organisations holding vast amounts of personally identifiable information (PII), fraudsters are escalating their attacks on these institutions.
Password spraying attacks, in which criminals attempt to guess commonly used passwords, have become far more efficient thanks to AI-powered bots.
Experian predicts that GenAI-driven cyberattacks will exponentially increase the scale and speed of password spraying, making it easier for fraudsters to gain unauthorised access to medical records and financial data.
How Businesses Can Respond:
- Enforce multi-factor authentication (MFA) for all users.
- Monitor login attempts for unusual patterns.
- Use AI-powered cybersecurity tools to block bot-driven attacks.
The Rise of Gen4 Bots: AI-Powered Cybercrime on the Rise
Traditional bot attacks have long been a problem for businesses, but the emergence of Gen4 bots is making fraud prevention even more challenging.
These advanced AI-powered bots are trained to mimic human behaviour, making them difficult to detect with traditional security measures.
Gen4 bots can bypass firewalls, evade detection tools and automate complex fraud schemes at a level never seen before. As these bots become more common, businesses must upgrade their fraud prevention strategies to stay ahead.
How Businesses Can Respond:
- Deploy behavioral analytics to differentiate real users from bots.
- Strengthen bot mitigation measures through advanced AI detection tools.
- Increase security layers for high-risk transactions.
A Comprehensive Fraud Prevention Strategy
According to Kathleen Peters, Chief Innovation Officer at Experian North America, fraud prevention in 2025 requires a multi-layered approach that integrates advanced technology, real-time data analytics and consumer education.
“We know technology is accelerating fraud at a rapid pace. The challenge is clear for businesses – it’s not just about mitigating risk for known threats but anticipating what’s coming next,” says Peters.
“Our 2025 forecast highlights the fight against fraud requires a comprehensive approach — combining advanced technology, consumer awareness and a commitment to constantly adapting to evolving threats.
Businesses need to invest in innovative, multi-layered fraud prevention strategies that leverage data, advanced analytics and technology to thwart risk.”
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