Businesses in Europe, the MENA Region, and Asia-Pacific regions are confronting a sharp escalation in fraud, with losses mounting faster than protective measures can respond, according to a study released by Experian. The research, conducted by Forrester Consulting on behalf of the global data and technology firm, reveals that 64 percent of organizations experienced higher fraud losses in the past year.
At the same time, Experian insights indicated that 68 percent of senior professionals admit their existing fraud prevention tools are struggling to match the speed and complexity of modern threats, particularly those powered by generative artificial intelligence.
Looking forward, 67 percent of respondents expect fraud attempts to intensify further in 2026.
The findings are based on responses from 979 senior fraud decision-makers in financial services, telecommunications, and e-commerce sectors across various countries: Australia, Denmark, Germany, Italy, New Zealand, among others. Fieldwork took place in July 2025.Sector patterns highlight distinct vulnerabilities.
Financial institutions and telecom providers are seeing rises in social engineering schemes and identity theft, while e-commerce platforms report growing problems with friendly fraud and refund abuse.
Traditional defenses—often reliant on rigid rules and manual reviews—are proving inadequate against these evolving tactics, the report states.A clear technology shortfall is evident.
Nearly seven in ten participants described their current fraud technology stacks as insufficient.
In response, 71 percent of organizations are directing more budget toward advanced fraud solutions than toward additional human analysts, signaling a decisive shift away from labor-intensive processes.
Modernization efforts are now top of mind. Seventy percent of leaders have placed strategic reviews of fraud systems at the forefront of their 2026 priorities, alongside cloud migrations and the adoption of richer data sources.
Device and behavioral intelligence, in particular, are gaining ground, with 73 percent planning investments in passive verification techniques that analyze user patterns without disrupting customer experiences.
Machine learning is delivering tangible gains for those who have implemented it.
Sixty-seven percent of ML adopters report improved detection accuracy, while 54 percent highlight its real-time capabilities as a major advantage.
Seventy percent agree that ML identifies sophisticated fraud patterns that rules-based systems routinely miss, thanks to its ability to retrain continuously on fresh data.
Collaboration is emerging as another critical pillar.
Seventy-three percent of businesses recognize the value of sharing fraud intelligence across organizations, and 74 percent predict that most companies will participate in collective networks within three years.
Building trust within these consortia is seen as essential by 75 percent of respondents.
Experian is supporting this trend with secure, centrally managed platforms that use API connections to enable compliant data sharing.“
Fraud was never a static challenge—it’s constantly evolving,” said Shail Deep, Chief Operating Officer for Experian EMEA & APAC. “
Generative AI is giving criminals unprecedented speed and sophistication. Businesses must modernize their fraud strategies now.
Today, 71 percent of businesses are investing more in fraud technology than in human analysts, a clear signal that manual reviews and rules-based systems can no longer keep up.
Device intelligence, behavioral analytics, and machine learning are becoming essential.
Meaningful collaboration and responsible innovation are no longer optional; they are the foundation of resilience in 2026 and beyond. The Experian report urges organizations to accelerate their adoption of layered, data-driven defenses to close the widening protection gap.
