Report: Plaid research on evolution of identity fraud in the AI era
Fraud losses are projected to reach $40 billion globally
Hi Fintech Futurists —
We are excited to share with you the latest white paper from Plaid, where they examine how fraud has evolved across each major Internet wave and why this moment demands a fundamentally new approach. Thanks as always for your time and attention.
Grab a copy of the report below, or read on about the general takeaways.
The AI era is redefining fraud prevention
AI is exposing the limits of identity controls built for a different Internet.
Signals that once worked are now easier to spoof, scale, and manipulate. Fraud losses are projected to reach $40 billion globally within the next few years, driven in large part by AI-enabled attacks.
Hundreds of billions in capital have been invested into large-scale AI capabilities across the world, and financial fraud has evolved as a result.
Inside this white paper, you’ll explore:
Why point-in-time verification is breaking down
How AI-driven fraud is scaling faster than traditional controls
Why financial behavior offers stronger, harder-to-fake context
How broader, cross-platform visibility reveals patterns others miss
Why traditional controls are failing
Every major digital shift — from ecommerce to mobile to social platforms — has forced a rethink of how trust is established online. Each wave expanded opportunity and created new openings for bad actors. The industry responded with new identity and fraud-prevention techniques to keep pace.
But this time is different. It’s no longer enough to make incremental improvements to existing controls. The same technologies fraudsters are using need to be combined with data sources that are significantly harder to fake or manipulate.
A new foundation for trust
Platforms that sit at the center of the financial ecosystem can see what no single organization can on its own — the full web of financial relationships.
Together, AI and network intelligence enable more precise decisioning: identifying high-risk activity earlier, stepping up only where needed, and preserving low-friction experiences for legitimate users.
Plaid Protect applies network intelligence to identity verification and fraud decisioning, helping organizations detect risk earlier, reduce false positives, and defend accounts throughout the user lifecycle.
Fraud is evolving. Your protection should too.
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