LSEG Risk Intelligence
- Fraud is accelerating alongside innovation. From synthetic identities to deepfake-powered scams, attackers are getting smarter and faster.
- Real-time fraud detection and identity verification are no longer optional—they’re essential.
- Strategic partnerships with risk-focused providers can enable speed without compromising security.
There is an adage that compares those who dare to work quickly to ‘traveling at the speed of light.” But those that move quickly encounter dangers, hazards, and risks for the benefit that moving so fast offers high rewards that outweighs those threats. In today’s world moving that fast means first to market, better customer experiences, and daring innovations. Which is why modern organisations should keep making progress “at the speed of light” and join forces with a partner that solves for risks just as quickly.
With AI entering the conversation, the ‘speed of light’ is more obtainable than ever and is becoming a resource to support moving quickly. However, it’s both a tool and weapon wield. Here’s what we mean, as a tool, organisations can use AI processes and adapt to the needs and demands of the market while nefarious characters are weaponizing that resource to create and invent new scams and frauds. Having a partner focused on risks, while you focus on innovation is paramount as our world moves forward. It is with this knowledge that we share five critical risks modern organisations face and how partnering with a provider who can travel at warp speed is so important.
1. Identity Takeover
Definition: A malicious actor gains unauthorised access to your client’s information and impersonates that client. While accessing accounts, this actor impersonates your client and changes contact details in order to transfer funds into accounts outside of your organisation.
Impacts: Beyond the monetary impact this can have on your organisation and your customer, this type of situation can severely damage your reputation and your relationships with clients. These events can occur in just a few moments, but their impact spans beyond years. There is no fast or easy solution to rebuilding trust and bringing your reputation back into good standing. In addition to those challenges, these types of attacks can financially ruin your customers.
2. Synthetic Identity Fraud
Definition: A fraudster creates a fraudulent identity by combining real and fabricated information. They then use this information to open accounts and complete transactions.
Impacts: Synthetic identities have long been among the most difficult challenges to identity verification due to the fact that this specific type of fraud doesn’t rely on one piece of information being fake but combines real and phony data making it more challenging to detect. However, the combination of stolen personal identifiable information (PII) available on the Dark Web and the virtually unlimited processing power of AI tools have never made the ability for fraud operators to create, test, and deploy synthetic identities greater. AI tools have empowered fraud networks to use synthetic identities en masse, creating new fictitious accounts at an unprecedented speed.
Once fraudulent accounts are created, they can be used for countless types of fraud, including the purchase of goods and services, facilitating illegal money transfers, establishing lines of credit, and more. Identifying synthetic identities and stopping fraud operators at the point of enrolment is critical to stopping fraud in its tracks. Once a fake identity has been successfully used to create a new account, it is much harder and costlier to correct.
This again, impacts your organisation and your customers on various fronts. In terms of its impact on your customers, they can expect financial losses, credit score damage, legal and long-term repercussions, as well as emotional turmoil in dealing with such an attack. From your organisation’s perspective, this type of fraud can of course result in loss of funds but can also increase operational costs and resource allocation as well as increase regulatory review and scrutiny. This goes beyond just reputational damage control.
3. Business Email Compromise (BEC)
Definition: Using email to trick individuals or organisations into sending funds or divulging confidential information to scammers. The fraudster typically uses tactics to create a sense of urgency while impersonating a well-known and authentic individual who appears to be suffering from a legitimate issue and needs assistance quickly.
Impacts: Once again, the impact of this type of fraud can span your organisation’s reputation while striking at your bottom line. This fraud preys on human emotion, specifically as it relates to being responsive, helpful, and empathetic towards someone perceived as authoritative or important, by creating a situation where they need support quickly. The damage done to your organisation and the individual who unknowingly aided in the fraud can be detrimental. BEC can severely disrupt vendor management when fraudsters hijack supplier credentials to impersonate trusted vendors, redirecting legitimate payments to fraudulent accounts and exposing your organization to financial loss and reputational damage.
4. Account Takeover Fraud
Definition: Account Takeovers (ATOs) occur where the login details to a bank account are compromised and a fraudster assumes ownership of the account. These can be difficult to detect for a variety of reasons, but pose a true issue when:
- Businesses want to avoid creating friction for their users so credentials aren’t as safeguarded or are widely shared.
- Credentials and passwords can be compromised in many ways (brute force attacks, credential stuffing, phishing and more)
- GenAI is becoming increasingly effective at defeating biometrics, such as facial and voice recognition
- Beyond having access to a customer’s fund balance, the fraudster can attempt to buy products with the hijacked account, and/or seek refunds, chargebacks, or other payouts illicitly.
- Gain access to supplier accounts, enabling them to place fraudulent orders, reroute payments, or request refund.
Impacts: Much like the previous risks, this risk can impact your bottom line, reputation and customer experience. These types of attacks are difficult to detect in real-time since the activity is designed to mimic legitimate actions. Due to this, your clients can find themselves on the liable for reimbursements and you can see drastic attrition, regulatory issues, and funds lost due to this type of fraud going undetected.
5. Payments Fraud
Definition: One of the most pressing concerns keeping decision-makers up at night is the rise of Authorised Push Payment (APP) fraud. This type of scam involves fraudsters deceiving individuals or businesses into sending funds to a fraudulent account.
Impacts: APP fraud is becoming exponentially sophisticated and costly, with losses projected to reach $331 billion by 2027*. Additionally, sixty-two percent of organisations reported at least one payment fraud attempt in the last year—up from 56% the previous year. Among those hit by fraud, 98% reported that fraud attempts had increased or were level. With AI now being incorporated into fraud attacks, the impact of APP fraud will only expand and increase the risk your organisation as these attempts will become more sophisticated and targeted with fraudsters using technology to create deepfakes and more convincing attacks now and in the future.
To learn more about APP and how AI will impact fraud attacks, read our Global App Fraud Whitepaper.
Strategies to combat these risks
Preventing fraud requires more than verifying credentials—it demands real-time monitoring of behavioral patterns to detect anomalies before they escalate into financial threats. By continuously analyzing user activity and automating risk-based decision-making, businesses can proactively block unauthorized transactions while allowing legitimate ones to proceed smoothly.
To reduce fraud risk without adding unnecessary friction, organisations should implement a layered approach to account verification that combines real-time data validation with continuous monitoring. By verifying both users and merchants at multiple touchpoints, businesses can ensure secure transactions while maintaining a seamless customer experience.
Strong identity verification practices are essential in a digital-first world, ensuring that every request comes from a verified, authenticated individual. Leveraging diverse data sources and multi-factor authentication methods can help organisations build trust, prevent fraud, and allow low-friction verification.
Being aware of these critical risks is the first step in addressing them. By implementing solutions that integrate seamlessly with your current processes—and are flexible enough to support your future infrastructure—you’re setting up your organisation for long-term success.
LSEG Risk Intelligence offers a powerful suite of solutions to help you confidently combat global bank accounts and identity fraud.
US Account Verification: Our US Account Verification Solutions suite (formerly known as GIACT) includes real-time bank account verification, ownership authentication, account velocity insights, and additional fraud and risk signals—all available via a single API. We offer extensive coverage of US consumer and business bank accounts and are a proud Nacha Preferred Partner in account validation, compliance, and risk and fraud prevention.
Global Account Verification (GAV): Authorised Push Payment (APP) fraud is on the rise, exploiting gaps in payment verification to divert funds. Our global solution provides real-time validation of bank accounts and their owners, enabling fast, frictionless and confident cross-border payments. Covering +25 countries globally, with more on the way, it reduces bank-to-bank payment fraud risk for Corporate Treasuries, Fintechs, Payment Service Providers and others involved in cross-border remittances.
Global Identity Verification: Triangulate your bank account verification alongside our comprehensive identity verification data to ensure the entity you’re doing business with is a real business or person. Our solution draws on 400+ authoritative in-country data sources across 50+ countries to verify consumer and business identities in real-time.
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