Financial fraud surge forcing ATO and AML strategy rethink

Fraud is consuming business resources at an unprecedented pace, according to TransUnion’s newly released H2 2025 Update to the Top Fraud Trends Report. Stakeholders from around the are calling for stronger AML controls and the application of different strategies and biometric technologies to prevent account takeovers, and the market is bringing new technologies to bear.

Based on responses from 1,200 business leaders across six countries, the TransUnion study found that companies globally lost an average of 7.7 percent of their annual revenue to fraud over the past year, costing an estimated $534 billion.

The impact is especially acute in the U.S., where surveyed business leaders reported average losses of 9.8 percent of revenue, marking a 46 percent increase compared to 2024. This figure is 27 percent higher than the global average, with the 200 U.S. respondents alone accounting for an estimated $114 billion in losses.

“Fraudsters are exploiting every digital touchpoint, from account creation to login and transaction,” said Steve Yin, global head of fraud at TransUnion. “The financial impact is staggering, and organizations must rethink how they verify identity and secure customer interactions.”

As financial losses escalate, so too does the sophistication of attacks, as TransUnion’s proprietary data indicates. Globally, scam and authorized fraud emerged as the leading cause of business losses (24 percent), followed by synthetic identity fraud (20 percent) and account takeover (20 percent).

Aspen Institute calls for national anti-scam strategy

A new report from the Aspen Institute’s Financial Security Program reveals that one in five U.S. adults have lost money to digital fraud, yet three-quarters never report these incidents to law enforcement. The report, “United We Stand: A National Strategy to Prevent Scams,” urges reforms across government and industry to curb the growing threat.

The strategy outlines a coordinated response that treats scam prevention as a national security priority. It calls on Congress and the White House to empower law enforcement with expanded authority, modernize legal frameworks, and establish a centralized anti-scam strategy; potentially through a Congressional Commission or dedicated federal office. The federal government should formally review and harmonize policies and procedures for anti-money laundering (AML) and countering terrorism financial (CFT), the Institute says.

That could include the use of international identifiers instead of domestic-only ones in AML tracking schemes.

Corporate leaders are also urged to step up. The report recommends that companies in high-risk sectors such as telecoms, social media, advertising, retail, banking and crypto adopt comprehensive anti-scam policies. This includes improving identity verification and deploying tools like liveness detection and digital credentials to block fraudulent actors.

The Aspen Institute also advocates for broader ecosystem reforms, including the use of artificial intelligence and advanced analytics to detect and prevent fraud, and increased investment in public awareness campaigns to educate consumers and reduce stigma around victimization.

The report proposes a feasibility study for a U.S. National Anti-Scam Center, which would support reporting, training and victim support as a centralized hub, to help focus efforts and improve outcomes across sectors.

Seon CEO advocates for behavioral biometrics to boost ATO security

Seon CEO Tamas Kadar argues in a post to BetaNews that a shift from static to dynamic authentication helps detect bots during account creation and identify account takeover attempts, especially those enhanced by AI-driven fraud techniques like credential stuffing and SIM swaps.

A key advantage is dynamic friction: security measures adapt in real time based on behavioral risk signals. Trusted users enjoy seamless access, while anomalies like unfamiliar devices or erratic typing trigger escalated checks like multifactor authentication or account freezing. This tailored approach strengthens fraud prevention without compromising user experience, Kadar believes.

Seon recently raised $80 million in a series C funding round, which the company plans to use to add talent and further its AI product development.

AML checks by LSEG, iDENFY, Sumsub

LSEG Risk Intelligence has unveiled World-Check Verify, a cloud-native screening API powered by AWS, designed to embed real-time compliance checks directly into payment and onboarding flows. LSEG says the product offers instant, low-latency screening using LSEG’s data with scalable infrastructure.

The solution addresses industry pain points including manual review burdens, false positives and the need for real-time data, which are highlighted in LSEG’s 2025 Global Risk Intelligence Survey.

iDenfy has introduced a no-code tool that instantly scans U.S. criminal databases to support KYC, KYB and AML compliance. It combines biometric ID verification with automated access to federal, state and local records, which it says delivers downloadable risk reports in seconds. iDenfy claims the tool is ideal for regulated industries as it helps flag high-risk individuals and streamlines onboarding.

“For U.S. companies, tools like the Secretary of State database check or Criminal Background Check make both KYC and KYB onboarding easier,” says Domantas Ciulde, CEO of iDenfy. “Just adjust your screening settings and quickly detect high-risk clients, defining what you want to do next.”

The IDC MarketScape’s 2025 worldwide assessment of identity verification providers for financial services has named Sumsub as a leader. The report highlights Sumsub’s AI-driven fraud prevention tools like spoof and synthetic identity detection, fraud network monitoring, and real-time AML screening as key strengths. With more than 4,000 clients, Sumsub is expanding its platform to meet evolving compliance needs across fintech, trading and banking. Clients include Guavapay, Wirex and Capital.com.

ATO attacks up 122%: Sift

Sift’s Q3 2025 Digital Trust Index reveals a 122 percent year-over-year spike in account takeover (ATO) attacks targeting fintech and finance, with travel platforms also seeing a 56 percent rise. Despite growing threats, consumer awareness remains low and poor password hygiene persists. ATO losses are projected to hit $17 billion this year.

Although 60 percent of consumers view ATO prevention as a joint responsibility between individuals and companies, businesses bear the brunt when security measures fail. The consequences are significant — 75 percent of users say they would cease using a platform following an ATO incident, and 87 percent would spread word of their experience, compounding reputational harm for the business affected.

The report warns that AI-powered fraud tools will accelerate attack speed, while consumer trust in AI-managed finances remains mixed across generations.

The full Sift Q3 2025 Digital Trust Index report is available here.

ATO prevention from Hypr, Amani, BioCatch

Hypr has introduced the Affirm Help Desk Application, which is a multifactor identity verification tool designed to protect help desks from fraud. Integrated with platforms like ServiceNow and Zendesk, it enables real-time verification via self-service, agent-assisted or PIN-based flows.

Users verify their identity by scanning a government-issued ID and submitting a selfie for liveness detection, ensuring biometric certainty and preventing spoofing or deepfakes. Hypr says the solution is for any organization that needs to stem the risk of ATO fraud arising from support interactions.

Amani has launched a “4D” biometric authentication layer to secure high-risk digital activities like large transfers and account changes. It uses passive liveness detection, 3D face biometrics and deep learning to combat impersonation, deepfakes and identity fraud.

Key features include NFC/ID matching, age and gender detection and bias-free verification, according to Amani, and is designed for financial institutions and fintechs.

Tyfone has integrated BioCatch’s behavioral analytics into its nFinia Digital Banking Platform to help community financial institutions (CFIs) detect and prevent account takeover fraud in real time.

The partnership enables behind-the-scenes monitoring of user behavior across web and mobile channels, identifying threats like social engineering, remote access tool (RAT) attacks and mule account creation, even when credentials are compromised.

Article Topics

Amani  |  AML  |  behavioral biometrics  |  BioCatch  |  financial crime  |  HYPR  |  iDenfy  |  identity verification  |  KYC  |  LSEG Risk Intelligence  |  SEON  |  Sift  |  Sumsub  |  TransUnion