The payments industry is undergoing rapid change, fueled by technological innovation and a growing appetite for seamless financial experiences. By 2028, global payments transaction values are predicted to reach almost $16.7 trillion. This expansion is good news for businesses and consumers alike, but it also brings new vulnerabilities and makes payments platforms increasingly attractive targets for fraudsters.
A recent report from Veriff shows that payment-related fraud is accelerating at a dramatic pace. In 2025, there was an 89% increase in attempted fraud within the payments sector, catapulting it from a moderate to high-risk environment. What’s behind this alarming trend? The rise of AI-driven threats is central, as fraudsters employ advanced tactics like deepfakes and digitally altered documents to bypass traditional security methods.
Understanding the risk landscape
Fraud in the payments sector is no longer a theoretical risk. It's a lived reality for organizations and their customers:
- Escalating financial impact: Over 75% of businesses have experienced negative effects on revenue due to fraud, with many reporting revenue declines between 3-5%. The consumer impact is equally stark: one in three US consumers experienced financial loss tied to payment fraud in the past year.
- Growing customer awareness: As cyber-attacks and scams become more sophisticated, customer demand for robust security has never been higher. A full 82% of surveyed consumers said strong identity verification measures, like ID scanning and biometric checks, are essential when using financial services.
- A regulatory tightrope: Compliance with evolving regulations, such as the US Bank Secrecy Act and Europe’s GDPR, is a core requirement. Adhering to these frameworks is vital for safeguarding both customer data and institutional reputation, and for avoiding significant penalties.
The double-edged sword of AI
It’s clear that artificial intelligence is both a major threat and a promising line of defense in the fight against fraud. Recent findings indicate that sophisticated, AI-powered fraud attempts have multiplied 3.6 times in under a year. This rapid evolution means that legacy security approaches risk falling behind. At the same time, many organizations are now turning to AI and machine learning solutions to enhance their fraud prevention efforts and better distinguish between genuine users and malicious actors.
Building trust in a high-risk environment
In this context, payment platforms must grapple with three urgent questions every time a user engages with their system:
- Is the user who they claim to be?
- Is the user trustworthy?
- Does the user’s identity remain consistent across their journey?
Meeting these needs often involves advanced identity verification and biometrics. Approaches such as real-time ID document checks, selfie-based authentication, and ongoing account validation are rapidly becoming standard practice. These measures can deter impersonation, document manipulation, and other sophisticated forms of digital fraud, while maintaining a seamless experience for legitimate users.
Looking ahead
The future of payments will be shaped by how effectively organizations adapt to these evolving threats. As digital finance expands, a proactive, technology-enabled approach to risk management will be critical for protecting both platforms and consumers. This means strengthening defenses, embracing smart regulations, and fostering a culture of trust at every level.
To dive deeper into the full findings and explore practical strategies for staying ahead of new fraud risks, access the complete report and eBook.
Access the full report to learn more about navigating payment fraud and securing the digital future.
