Growth in fraud leads businesses to ramp up prevention efforts

Businesses could be forfeiting up to five percent or more of their revenue to fraud, considering the hidden costs of operational inefficiencies, compliance penalties and customer attrition, according to a new report.

Based on responses from almost 600 decision-makers and strategic leaders across financial services, fintech, payments, eCommerce and iGaming, the study from fraud prevention and compliance specialist SEON, finds budget allocations indicate that 86 percent of companies are spending over three percent of revenues on anti-fraud measures.

Fraud is outpacing growth too with 43 percent of businesses reporting fraud growth outstripping revenue, highlighting an urgent need for advanced defenses.

"Static fraud defenses are no longer adequate in today’s fast-moving threat landscape," says Tamas Kadar, CEO of SEON. "Organizations must embrace adaptive and transparent AI models to mitigate fraud risks faster and protect revenues more effectively. This report provides critical insights into the evolving dynamics of fraud prevention, underscoring the essential roles of innovative technologies and skilled professionals in this ongoing battle."

Among other findings 62 percent of organizations are adopting real-time transaction monitoring, moving away from outdated batch-based systems. Automation is a focus too, 76 percent of businesses are intensifying efforts in using AI, machine learning and analytics to pre-empt fraud.

Staffing levels are also increasing. Nearly 40 percent of smaller companies are adding up to five new hires to fight fraud, while enterprises lead in hiring 10+ new fraud specialists.

The full 2025 Global Digital Fraud Report is available from the SEON site.

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