Fraud: How Are Fintech Partnerships Fighting Back?
Fraud, one of the more pressing issues which fintech aims to address, affects businesses and consumers alike. Far from being a victimless crime, it has psychological and deep economic impact.
Partnerships between fintechs have surged in an effort to tackle the global rise of financial crime, with reports suggesting that AI has been a significant player in the digital payments fraud landscape.
AI technology could be a hindrance, however, some recent partnerships have made the efficient technology work for them.
How is fraud affecting the fintech landscape?
Fintech is susceptible to different types of fraud due to the intricate and digital-first approach it has.
Authorised fraud refers to when the account holder is deceived, and sends money to a payee acting under disingenuous circumstances.
Unauthorised fraud describes the process whereby the account holder has not provided authorisation for a payment to proceed. The transaction is carried out by a third party.
Statistics: year on year increase
An increase in identity fraud has seen more collaborations between names such as Nasdaq Verafin and BioCatch in order to provide a global solution.
A report from UK Finance states that in 2024, the UK lost approximately £1.6bn to fraud.
It further reports that there were 3.31 million confirmed cases of fraud, a rise from 2023 by 12%.
Early analysis of data from 2025 show a rise of fraudulent authorisations of card payments in the UK by 16%, according to a report by BioCatch.
BioCatch also published its report on digital banking trends in the US, suggesting that the currency of choice for fraudsters is currently blockchain-based stablecoins.
Digital payments
Bringing increased speed and convenience to every user, digital payments are increasingly used by consumers in everyday lives.
Despite the benefits of using digital payments, such as improved cashflow and better financial tracking, fraudsters have utilised it as an opportunity for theft.
Recently, Vixio published a report detailing how digital payments are enabling an increase in authorised push payment fraud.
AI in fraud
The Fraudscape 6 month report into 2025 brings insights on how AI has been used by fraudsters to their advantage.
A record number of cases of fraud risk were recorded, with 118,000 cases of identity fraud reported by Cifas members from January to June.
Intelligence from the report lists that AI is the main driver of this type of fraud.
Advanced AI is used to create convincing identification documents, including forgeries. These documents are bypassing verification systems, allowing fraudsters access behind a seemingly secure service.
The industry gathers to take stock
These challenges and opportunities are precisely what industry leaders are grappling with. The conversation will take centre stage at FinTech LIVE London 2025, where a key panel, āFraud & ID Verificationā, will convene.
The discussion will feature perspectives from Luke Vevers of Marsh, Trisham Chundunsing from Genpact, Jason Sheehy of Post Office and Diarmuid Thoma from AtData.
Get your tickets here to be part of the conversation.
AI against fraud
Pairings such as the recently announced Mastercard and Entrust sees collaborative efforts to reinforce security measures using AI-powered technology.
The partnership combines Entrustās Identity Verification process to send personal information, such as customer name, address and phone number, to the Mastercard Identity network.
The Mastercard Identity network generates a risk score; utilising not just authoritative data from a single source but also in combination with historical data.
Unusual behaviour patterns that signal fraud are then detected after machine learning is applied to the data.
Also teaming up with Monzo, Santander and NatWest, Mastercard has dedicated itself to further preventing fraud using AI.
Mastercard introduced an AI and network data solution into its transaction scoring capabilities to identify money laundering activities and flag suspicious "mule" accounts.
The partnerships rolled out in the UK and initially focussed on APP fraud before being expanded to cover disputes in goods and services.
A discussion providing further insights around Fraud and Verification in the fintech landscape will be available at FinTech Live.
About FinTech LIVE London 2025
Each year, FinTech LIVE London serves as a central meeting point for leaders and innovators across the financial spectrum: from banking and payments to insurtech and crypto. The event offers a packed agenda of keynotes, workshops and panel discussions designed to tackle the industry’s most pressing questions.
It's an opportunity to hear directly from the people building the future of finance and to connect with peers from around the globe. For those looking to engage directly with the topics shaping the industry, the conference is a prime opportunity.
Tickets are available now for those who want to secure a place at the conversation.
