A new report from Signicat shows that European companies are reporting a growing number of fraud cases, but still maintain too much confidence in their fraud prevention measures.
According to the report The Battle in the Dark 2025, the number of identity fraud attempts at European companies has increased by 59 percent over the past year. Yet, 74 percent of the organizations surveyed say they have confidence in their defense capabilities. At the same time, only 45 percent indicate that they actually measure the impact of fraud.
Increase in fraud, lack of insight
The study, conducted in collaboration with Red Goat Cyber Security, surveyed more than 900 fraud managers from nine European countries. Respondents estimate that on average 19 percent of their transactions are fraudulent. They indicate that the total impact of fraud – including prevention costs – amounts to approximately 22 percent of their revenue.
Despite these figures, many companies lack insight. 47 percent do not consistently monitor fraud, and 55 percent do not measure its impact. According to the researchers, this makes it difficult to take targeted actions against fraudsters.
Technological arms race
Fraudsters are increasingly using artificial intelligence (AI) to execute their tactics more efficiently and on a larger scale. Document forgery occurs in virtually all sectors. 71 percent of respondents agree that AI plays a role in the majority of fraud cases. In turn, companies are also deploying AI: 90 percent believe this technology helps them stay ahead of threats.
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The most serious forms of identity fraud remain account takeovers and social engineering. These methods are difficult to detect because they often only come to light after customers themselves report an incident. According to the researchers, the fight against fraud today is more than ever a technological arms race, where blind trust makes companies vulnerable.