NetGuardians: Rise in Fraud Threats to Cost Banks US$1tn+

NetGuardians, a Swiss leader in AI-driven fraud prevention solution provider has released its latest report titled – The Top Banking Fraud Types to Watch in 2025.

The report highlights the rise in global fraud and the sophisticated methods used by cybercriminals. The findings from the report identify the most dangerous threats to banks, businesses and consumers in 2025. 

Joël Winteregg, Co-Founder and CEO of NetGuardians, commented on the findings: "Fraud is no longer just about stolen money, it’s about trust. Every fraudulent transaction is a potential customer lost. The sophistication and scale of modern fraud schemes demand a proactive and secure AI-driven approach. 

“At NetGuardians, we are committed to equipping financial institutions with the technology they need to protect their clients and maintain trust in the financial system. The data doesn’t lie, fraud is growing, and institutions that fail to act risk becoming the next headline."

Key Findings

In the report, NetGuardians emphasises the fundamental need for financial institutions to adopt advanced fraud prevention measures, including AI and machine learning to help detect and prevent fraudulent activities in real time.

Key findings from the report include: 

• Fraud losses skyrocket - Global financial crime cost banks and customers over US$1tn in 2024, with the trend only increasing.
• Scammers are relentless – Nearly 50% of the world’s population receives scam attempts weekly.
• Fraud risks for older adults - Individuals aged 60 and older are particularly susceptible, with losses estimated at US$61.5bn in 2023, often due to fraudulent investment schemes and fake support offers.
• The true scale of fraud is hidden - Despite the significant financial and emotional toll, only 28% of scam attempts are reported to authorities and only 4% of victims recover their lost funds.

Traditional fraud detection methods are no longer enough. Cybercriminals are using automation, deepfakes and social engineering to outsmart outdated security measures and AI-driven prevention is the only way for banks to stay ahead.

The impact on fintech

For fintech firms, these fraud trends present both challenges and opportunities. Traditional fraud detection is no longer effective, pushing the industry towards AI-driven solutions that can analyse transactions in real time. 

Banks and fintech companies must adopt machine learning models to detect fraudulent activity before funds are lost. Regulatory pressures will also increase, requiring stronger compliance measures.

Consumer trust in a company is on the line, with fraud damaging reputations and increasing customer churn. 

Fintech firms must balance security with seamless user experience, reducing friction while enhancing fraud detection. The report highlights that AI-driven solutions, like those from NetGuardians, have reduced customer friction by 85% and fraud detection costs by 75%.

Fintech firms will also need better consumer protection strategies, personalised security alerts and fraud education. Startups in fraud prevention, AI security and risk management are well-positioned for growth as financial crime continues to evolve.

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