Fraudulent Bank Transactions May Surge 153% By 2029
Growing From $19 Billion In 2024
Juniper Research has released a startling report indicating a projected 153% increase in the value of fraudulent banking and money transfer transactions over the next five years. Starting from $19 billion in 2024, this forecast highlights a growing global concern for the financial sector.
According to the report, fraudsters’ escalating use of artificial intelligence (AI) is intensifying pressure on banks. In response, financial institutions are ramping up their employment of AI-driven technologies to counteract these threats, demonstrating an arms race in cybersecurity.
The research also unveils the leading vendors in fraud detection and prevention for 2024, as assessed by Juniper’s Competitor Leaderboard.
This ranking evaluates companies based on the completeness of their solutions, geographic reach, and future business potential. LexisNexis Risk Solutions, Mastercard, Visa, ACI Worldwide, and Thales are topping this year’s list and are recognised for their innovation and comprehensive service offerings.
The report’s author, Cara Malone, stressed the urgency of vendors developing agile, real-time solutions to combat emerging scams like APP fraud.
“The shift towards instant payments necessitates faster response times from banks, challenging the efficacy of traditional fraud detection tools,” Malone explained.
“AI integration is crucial to enable real-time risk assessment and prevention.”
The Juniper research suite extensively analyses fraud detection and prevention strategies across over 60 countries, backed by comprehensive market statistics and future forecasts. It is a critical resource for financial institutions navigating the evolving landscape of cybersecurity threats and opportunities.
Fraudulent banking involves deceitful practices within financial institutions, undermining trust and economic stability. Typical schemes include identity theft, where personal information is stolen to access accounts, and phishing scams trick customers into revealing sensitive data.
Rogue employees may falsify records or misuse client funds for personal gain. Such actions damage reputations, leading to legal repercussions and financial losses for victims.
Regulatory measures aim to curb these activities, emphasising transparency and security protocols. Vigilance and robust cybersecurity are crucial in combating these threats, safeguarding institutions and clients from the pervasive risks of fraudulent banking practices.
Featured image: Fraudsters’ escalating use of AI intensifies pressure on banks. Credit: Eduardo Soares
Last Updated on 6 months by News Desk 2
