Fraud Prevention Strategies for Modern Business

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Fraudulent Activity Continues to Evolve Amid Strengthened Payments Ecosystem

The payments industry has seen a significant decline in token fraud and enumeration losses over the past year, thanks to improvements in tokenization, authentication, and network-level detection. However, despite these advances, fraudulent activity continues to evolve and adapt, driven by the increasing use of artificial intelligence (AI) and sophisticated attack methods.

Nearly $1 billion in scam activity was identified between July and December 2025, with scammers employing AI-generated content, voice impersonation, and deepfake media to increase the effectiveness of their campaigns.
Experts predict that AI will play an increasingly central role in the development of future scams.

According to Michael Jabbara, Senior Vice President of Payment Ecosystem Risk and Control at Visa:”The rapid adoption of AI has fundamentally lowered the barrier to entry for fraud,” “What once required deep technical skill can now be executed with a prompt. As a result, intelligence-driven defenses and coordinated action across the ecosystem are more critical than ever.”

Attackers are shifting their focus towards trust-based and third-party dependencies, exploiting vulnerabilities in user interactions and relationships between businesses. Companies are implementing advanced threat intelligence systems and cross-partner coordination strategies to stay ahead of emerging threats.

Ransomware activity also increased during the second half of 2025, with incidents rising 26% compared to the previous year.
However, victims paid less often, with only 23% paying ransoms, the lowest rate on record.
Average ransom payments dropped 66% over the same period, indicating a shift towards more targeted and efficient attacks.

Mitigating Threats

Organizations are prioritizing operational recovery and limiting the spread of an incident after an intrusion occurs. Measures such as recovery time objectives, backup integrity, and third-party incident management are becoming increasingly important in ransomware planning and response efforts.

The payments industry must remain vigilant and proactive in its approach to combating fraud and protecting against emerging threats. By staying informed and working together, the industry can build a stronger, more secure ecosystem for all stakeholders.