Experian: Fraud Is Rising, Impact of AI Remains Concern

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Experian, Costa Mesa, Calif., put out its 2026 U.S. Identity & Fraud Report, finding that 60% of U.S. businesses report that fraud losses are somewhat or significantly higher than in previous years.

Seventy-seven percent of businesses expect to increase their fraud management budgets this year.

Per the FTC, there was $15.9 billion in consumer-reported fraud losses in 2025, across 3 million fraud reports. That’s an increase of 32.5%, compared with $12 billion in reported fraud losses and 2.6 million fraud reports in 2024.

And, the FBI Internet Crime Complaint Center reported nearly $21 billion in cyber-enabled crime losses in 2025, the report noted.

Experian warned that artificial intelligence is driving the increased fraud. While many consumers know about these types of scams, many are not–23% of low-income consumers said they have not heard about AI-related scams. About half of consumers said they feel more like a target for fraud than they did a year ago and more than half say they are concerned about AI-enabled scams.

As a result, they expect companies to respond to fraud and identity-related concerns through stronger online security, clear communication and more visible protection measures. For consumers aged 18-24, 32% believe retailers and platforms are accountable for fraud reimbursement.

Eighty-four percent of consumers said they would complete additional security steps if they help prevent fraud. The report looked at security measures consumers want versus what businesses are using. Consumers point to behavioral biometrics (83%) and banking app authorization (76%) as security measures that make them feel the most secure. But, businesses most commonly employ security questions (32%) and multi-factor authorization (31%), indicating a mismatch.

Experian cautioned about another gap influenced by income–39% of higher-income customers consider accurate recognition to be extremely important, compared with only 26% of lower-income consumers.

Only 23% of consumers said they feel complete control over how their personal data is used online, 56% said they want complete control and 64% said they want more control over their personal data across at least some online activities. Activities where consumers report wanting more control include conducting everyday banking (57%) and applying for a credit card or loan (50%).

“This year’s findings point to a clear convergence between consumer expectations and business priorities. Consumers are embracing digital channels while expecting stronger protection, greater transparency and more control over their information,” noted Kathleen Peters, chief innovation officer at Experian North America. “Businesses are responding with investments in fraud prevention, identity intelligence, adaptive authentication and AI-driven decisioning.”