India’s fraud landscape shifts towards high-value organised crime, research

By Divya Shah

According Experian, the global data and technology company, launched its latest report, The New Frontier: Emerging Trends in Fraud Prevention, which examines how fraud risks are evolving alongside India’s rapidly expanding digital financial services sector.

The value of suspected fraud-linked applications has nearly quadrupled over the past three years, even as the volume of such applications has declined. The trend suggests a shift from isolated fraud incidents to more organised and financially impactful fraud networks.

Drawing on publicly available data from the Reserve Bank of India’s Annual Report 2025-26 and Experian’s fraud prevention insights, the study found that the amount involved in reported or suspected fraud cases increased from $1.29 billion (INR 12,230 crore) in FY24 to $5.04 trillion (INR 48,021 crore) in FY26.

The report identifies a growing prevalence of organised and network-driven fraud schemes, including identity theft, synthetic identities, mule accounts, and misrepresentation of borrower information. Fraudsters are also leveraging advanced technologies, including artificial intelligence, to execute increasingly sophisticated attacks.

Experian noted that digital onboarding and lending ecosystems are becoming key targets for organised fraud rings, underscoring the need for stronger fraud prevention measures across the customer lifecycle, from onboarding and application screening to ongoing monitoring.

Application anomalies, defined as irregularities in borrower information or application patterns, continue to be a significant challenge across lending products and regions.

Among major retail lending products, credit cards recorded the highest anomaly rates, according to the report. Personal loans, auto loans, and business loans also demonstrated varying levels of vulnerability.

Misrepresentation of income, employment details, identity credentials, and contact information remains a major driver of organised financial crime.

Experian’s analysis highlights the growing effectiveness of intelligence-led fraud prevention strategies that integrate application-level analytics, behavioural intelligence, and alternative data sources.

AI and machine learning are also becoming increasingly important in fraud management. Among organisations already using ML-based fraud solutions:

• 58% reported improved identification of emerging fraud types
• 54% experienced higher fraud detection accuracy
• 56% reduced customer friction through passive fraud checks

These findings demonstrate how AI-driven decisioning can help organisations strengthen security while maintaining a seamless customer experience.

Manish Jain, Country Managing Director, Experian India, said, “India’s financial ecosystem is becoming more digital, faster and increasingly connected, creating significant opportunities for consumers and lenders. At the same time, this transformation is changing the nature of fraud risk and reshaping how organisations approach trust, resilience and decision-making.

The report concludes that fraud prevention is evolving from a compliance requirement into a strategic business capability. As digital lending and onboarding continue to expand, financial institutions will increasingly require adaptive, data-led, and intelligence-driven approaches to strengthen resilience, improve decision-making, and protect customers.