Most consumers think AI will increase fraud
Americans are worried about fraud, especially with the rise of AI technology.
The vast majority of Americans (90%) are worried about the rise in fraud, according to a new survey from financial crime prevention solution provider Abrigo. More than half (51%) are “extremely concerned” and another 39% are “somewhat concerned.”
Nearly seven-in-10 (68%) Americans are concerned about financial fraud attempts increasing with the advancement of AI, and three-quarters (74%) believe the advancement of AI will result in the increased success of those attempts.
“Americans are expressing deep concern about rising fraud and the fear that AI advancements will add to rising fraud rates,” said Ravi Nemalikanti, chief technology officer at Abrigo. “Financial crime is always evolving, and that means we will need vigilant, ethical, AI-assisted crime-fighters to stop criminals using AI.”
[READ MORE: FMI Study: The biggest problems affecting grocery retailers are theft and fraud]
Close to half of those surveyed (45%) by Abrigo self-reported having been the victim of financial fraud. Among those who were victims, the top three types of fraud experienced were credit card theft (53%), ACH or electronic payment fraud (19%) and check fraud (17%). Almost a quarter (24%) indicated they lost $5,000 or more. Sixteen percent of respondents switched financial institutions entirely after becoming fraud victims.
According to the survey, more than a third of Americans (36%) believe that 75% to 100% of all fraudulent transactions are able to be recovered. However, the 2023 Association for Financial Professionals (AFP) payments fraud survey found that “a majority of organizations recoup less than 10% of funds stolen due to fraud.”
The Abrigo survey revealed another key misconception, with over half of Americans (53%) believing credit card theft is most common and what they fear most (43%), when in reality check fraud is the bigger liability for banks.
Propeller Insights conducted Abrigo’s nationwide survey in March 2024 on 1,059 consumers, including 39% self-reported small business owners.
