Australian organizations in financial services, telecommunications and e-commerce report rising losses from fraud and growing concerns that existing defenses are falling behind, according to a study conducted by Forrester Consulting and commissioned by Experian.
The Australian findings are based on a survey of 109 senior fraud decision makers. It found that 65% of organizations saw their fraud losses increase year-over-year. Looking ahead, 68% expect fraud attacks to increase again in 2026 compared to the previous year.
This result suggests that the gap between fraud attempts and the tools used to detect and block them is widening. In Australia, 73% said current fraud technology is not keeping up with the threat. Another metric from the survey found that 68% of business leaders believe their company’s security tools are no longer adequate.
Generation AI
The survey highlights the changing threat landscape, with generative AI emerging as a key concern for Australian respondents. Approximately 61% said this is the biggest fraud threat they have seen, and 64% said they are seeing a noticeable increase in fraud attempts using generative AI within their organizations.
Many also believe that this trend is still in its early stages. In an Australian survey, 58% of organizations agreed they were only seeing the “tip of the iceberg” when it came to AI-powered fraud.
The global study surveyed 979 senior fraud decision makers across nine countries: Australia, Denmark, Germany, India, Italy, New Zealand, Norway, South Africa and Spain. Participants worked in the financial services, telecommunications, and e-commerce sectors.
Global findings showed different patterns by sector. The study points to rising levels of social engineering and identity theft in financial services and communications. E-commerce is witnessing an increase in friendly fraud and refund abuse.
investment priorities
Many organizations are exploring new data sources and discovery methods. In Australia, 67% plan to invest in device and behavioral data.
Across our international sample, technology spending is growing faster than analyst investment. Globally, 71% say they are investing more in fraud technology than in human analysts, pointing to the limitations of manual reviews and rules-based systems as caseloads increase and methodologies change rapidly.
The study also links slow progress to procurement and implementation challenges. This highlights the “build or buy” decisions that can delay upgrades as organizations weigh internal development versus external suppliers, increasing risk as attacks and tactics evolve rapidly.
machine learning
Based on global data, reviewing fraud solutions is at the top of the agenda for the year ahead. Approximately 7 in 10 respondents ranked them as their top priority. Other areas of focus include migrating systems to the cloud and investing in new tools.
The study also investigates the use of machine learning in fraud detection. Among machine learning users in our global sample, 68% reported measurable improvements in detection accuracy after implementation.
Respondents also cited real-time detection as a key benefit of machine learning (67%), as well as the ability to retrain models with new data as tactics change. Another global measurement found that 82% agree that machine learning helps detect fraud that rules-only systems miss.
sharing intelligence
This research shows that there is a growing interest in sharing information between organizations. Globally, approximately 73% agree that sharing fraud intelligence is important to stay ahead of threats, and three-quarters say building trust within fraud consortia is critical to success.
Experian is developing a central management hub with API connectivity to share data across the network while meeting regulatory requirements.
Matthew Demetriou, managing director of software solutions A/NZ at Experian, said Australian organizations were re-evaluating their approach as losses increased and the threat environment changed.
“Australian organizations are adapting to a rapidly evolving fraud landscape,” Mr Demetriou said. “Fraud losses are on the rise, attacks are becoming more sophisticated, and many companies are finding that existing technology cannot keep up. The rise of generative AI is accelerating both the scale and sophistication of attacks, making it important for organizations to reevaluate their fraud prevention strategies. Intelligence, behavioral analytics, and machine learning have become essential. Organizations that modernize and collaborate now will be best positioned to protect trust and growth in the future.”
With Australian respondents expecting a further increase in attacks in 2026, the report points to further investment in fraud technology and data-driven detection in the next planning cycle.
