The one constant in fraud is that the fraudsters are always evolving. Banks and credit unions need to stay ahead of emerging fraud trends to protect account holders and preserve trust. Here are some of the top fraud trends in 2025 and possible solutions to mitigate these threats.

1. Synthetic Fraud

Synthetic fraud occurs when fraudsters combine real and fake information to create entirely new identities. These fraudulent identities can be used to open accounts or make unauthorized transactions, often evading detection for months or years. In the U.S. for example, Credit Privacy Numbers (CPN) are being used to create millions of synthetic identities. 

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To counter synthetic fraud, banks and credit unions can employ AI-powered systems that analyze large volumes of data and spot inconsistencies. Forrester notes that generative AI enhances fraud management, including its applications in fighting synthetic fraud. 

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2. Deepfake Fraud

As much as GenAI presents opportunities for financial institutions, it also creates new threats. Fraud schemes have started using deepfake media created with generative artificial intelligence tools. Deepfakes use AI-generated videos or audio to impersonate individuals, often to trick account holders into revealing sensitive information or authorizing fraudulent transactions. To understand the magnitude of this threat, even the US Department of Defense is investing in deepfake detection technology.

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How to respond? Pick up anomalies as early as possible. To do this, you’ll likely have to partner with a solutions provider that has access to large datasets, where AI and ML algorithms can alert to new threats. 

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 3. Business Email Compromise (BEC)

BEC involves fraudsters impersonating legitimate employees or business partners through email to trick recipients into transferring funds or sharing sensitive data.

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To protect against BEC, banks and credit unions should stay on top of the latest trends in this space, provide regular employee training, and educate account holders.

4. Account Takeover

Fraudsters gain unauthorized access to a customer’s account by stealing login credentials, often through phishing or other means.

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Combating account takeovers requires real-time fraud monitoring systems to track unusual login attempts or transactions. 

5. Authorized Push Payment (APP) Scams

APP scams occur when fraudsters convince account holders to authorize payments to fraudulent accounts, typically by impersonating trusted entities like family members or business partners.

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To prevent APP scams, banks should implement real-time transaction alerts to notify account holders of large or unusual transactions. Ongoing education for account holders about the dangers of APP scams and promoting skepticism around urgent payment requests can also reduce the frequency of these attacks.

6. Card-Not-Present (CNP) Fraud

CNP fraud is when fraudsters use stolen card details to make online purchases where the physical card is not required for the transaction.

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Financial institutions can protect against CNP fraud by working with solution providers who implement tokenization technology, which replaces sensitive card information with a unique identifier that is useless to fraudsters. 

7. Form Jacking

Form jacking involves cybercriminals inserting malicious code into online payment forms, allowing them to steal credit card information as it is entered by account holders.

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Generally, this type of fraud starts small and grows quickly – a perfect use case for AI-powered solutions that detect and help prevent this type of fraud early.

8. Synthetic Data Attacks

Fraudsters use synthetic data to create fake transaction histories or credit scores, making it easier for them to impersonate legitimate account holders and bypass identity verification processes.

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Financial institutions can address synthetic data attacks by employing AI-driven fraud detection systems that validate the authenticity of data in real time. 

Our Perspective on Fraud in 2025

One thing is clear. Financial fraud is becoming more complex. Ever-advancing fraud technologies, like deepfakes and synthetic data, are forcing financial institutions to adapt at an accelerated pace. 

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At Rippleshot, we see this as both a challenge and an opportunity. The trend toward AI-driven fraud detection is not just a technical evolution. It represents a shift in how we approach fraud prevention. 

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Financial institutions that can integrate artificial intelligence and machine learning into their operations will not only be able to prevent fraud more effectively but will also gain deeper insights into emerging patterns, enabling them to predict and respond faster.

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In our view, the key to staying ahead of fraud in 2025 is in leveraging technology safely. 

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Fraud moves fast. Thanks to technology and forward looking companies like Rippleshot, we can move faster. 

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