Financial fraud has reached alarming levels. Each year, between $1.4 and $3.5 trillion is laundered through illegal schemes, while a major bank spends around $1 billion each year to combat it. More than half of banks and fintech firms report an increase in attacks, and two-thirds have noticed more consumer scams. In this environment, the industry must enhance defenses, invest in anti-fraud systems, and use new technologies.
However, criminals are also adopting modern tools like AI, cryptocurrencies, and generative models. Deloitte estimates that advances in generative AI alone could cost banks an additional $40 billion in fraud losses by 2027. The fight has turned into a race where the speed of innovation is crucial for survival.
Banks, Neobanks, and Exchanges: Betting on AML and KYC
For traditional banks, neobanks, and payment startups, the main focus is strict compliance with AML (anti-money laundering) and KYC (know your customer) requirements. Regulators are tightening the rules, and 98% of executives recognize rising compliance costs. Losses can reach up to 9% of annual revenue when accounting for refunds, investigations, and fines.
Modern anti-fraud programs include identity verification, sanctions screening, transaction monitoring, and regulatory reporting, often supported by AI and machine learning. A risk-based compliance strategy is becoming more popular, as firms allocate resources to the riskiest areas. More than half are increasing investments in third-party solutions, and three-quarters already use biometrics, dynamic authentication, and data aggregators. Effective KYC and AML are now viewed as a competitive advantage, building trust with both clients and regulators.
Small and Medium-Sized Enterprises: Securing Payments and Data
SMEs—online shops, distributors, and marketplaces—are becoming prime targets for fraud. Seventy percent of small businesses feel unprepared for modern risks. In small-business lending alone, fraud grew 13.6% in 2023, while e-commerce losses surpassed $48 billion worldwide. The real costs often exceed the amount stolen. For every $100 in fraudulent transactions, merchants lose about $207 when considering operational costs, disputes, and penalties. For SMEs working with tight margins, such losses can be devastating.
To respond, companies are integrating fraud filters into CRM/ERP systems, using payment APIs with built-in risk rules, and standardizing two-factor authentication and tokenization. Globally, 75% of online retailers plan to increase fraud-prevention budgets. On average, an online shop already uses at least five tools, ranging from machine learning to behavioral biometrics.
Fintech startups like RUTA now offer “Fraud Prevention as a Service.” Their built-in monitoring and scoring systems help small firms swiftly detect suspicious behavior, such as stolen-card purchases or altered payment details. Data security is equally important. Encryption, regular backups, access controls, and staff training can significantly lower the risk of cyberattacks.
Logistics and Transport: Supply Chain Transparency
Logistics faces distinct fraud challenges, especially trade-based money laundering (TBML) and document forgery. In the UAE, 59% of firms and in Saudi Arabia, 61% see TBML as a significant risk. Blockchain has emerged as a powerful solution. Distributed ledgers record shipments and financial flows, which helps prevent invoice forgery or hidden routes. Permissioned platforms log origin data, customs declarations, and warehouse transfers in a tamper-proof manner.
Complementary tools include IoT sensors and GPS trackers, which provide real-time updates on cargo and reveal hijacking or rerouting attempts. Multi-level access controls and registry checks for consignees are now essential. Customs compliance software automatically verifies cargo details against databases, flagging any suspicious declared values or routes. In combination with international data sharing, these tools make it more difficult for smugglers and shadow exporters.
Conclusion: The Evolution of Defense
As finance becomes more digital, the attack surface grows. Threats like deepfakes, social engineering, API exploits, and supply-chain hacks pose increasing risks. The only solution is ongoing evolution—AI-driven anomaly detection, biometrics, blockchain transparency, data sharing, and collaboration among banks, fintechs, and regulators. Seventy-two percent of companies plan to increase anti-fraud spending. The future of fintech relies on trust. When innovation works hand in hand with reliable protection, everyone benefits. Businesses gain loyal customers, consumers enjoy safety, and economies grow sustainably.
RUTA supports banks, fintechs, e-commerce, and logistics in creating such ecosystems. They offer AML/KYC solutions, anti-fraud platforms, and secure payment APIs.
