Cyber fraud, encompassing hacking, deepfakes, voice cloning, and sophisticated phishing schemes, has seen a significant increase of 14% year over year, as reported by Trustpair. This rise in fraudulent activities has especially impacted the United States, with 90% of US companies being targeted by cyber fraud in the past year, marking a notable uptick from 79% in 2023. The surge in fraud can be largely attributed to the rapid adoption of AI by fraudsters, with generative AI tactics like deepfakes and deep audio witnessing a substantial 118% increase in 2024.
Amidst escalating concerns over cybersecurity, executives in the finance, treasury, and accounts payable sectors have identified cybersecurity as the primary business risk for 2025, and a major factor amplifying payment fraud. Despite the growing sophistication of cyber fraud methods, a majority of executives express confidence in their ability to detect deepfakes, BEC scams, and other advanced attacks. However, the report suggests that this confidence may be misplaced, given that a significant percentage of organizations have experienced successful fraud attacks.
Furthermore, the evolving landscape of fraud is evident in the shifting approaches adopted by fraudsters. BEC and imposter email scams have emerged as the top methods used against organizations, experiencing a substantial 103% year-over-year increase. Financial losses attributed to payment fraud also saw a significant spike, with 60% of companies reporting impacts exceeding $5 million in 2024, representing a 136% increase from the previous year.
Beyond financial ramifications, executives are increasingly concerned about the reputational impact of fraud, particularly with customers, investors, and vendors. The study reveals that a growing number of companies have been targeted by various forms of fraud, with vendor fraud and wire transfer fraud topping the list. However, these are also the types of fraud for which companies feel least prepared.
As fraud continues to pose a significant threat to businesses, the importance of proactive measures cannot be overstated. While some companies have invested in fraud awareness training and policies, challenges remain in ensuring their effective implementation. Manual processes still dominate many organizations’ fraud prevention efforts, with only a minority utilizing automated tools for account validation and supplier credential checks throughout the procurement process.
In light of these challenges, experts like Lee-Ann Perkins emphasize the necessity of automation in combating fraud. As fraud becomes an increasingly pervasive business risk, companies must prioritize the implementation of robust automated systems to enhance their defenses against evolving fraudulent tactics. It is imperative for organizations to adapt to the dynamic fraud landscape and stay vigilant in order to safeguard their financial assets and reputations in the face of sophisticated cyber threats.