Full Breakdown
Companies Must Treat Fraud as an Enterprise-Wide Risk
By Drooid · · How we work
Rising Fraud Losses in 2025
The Federal Trade Commission (FTC) reported that Americans lost roughly $16 billion to fraud in 2025, the highest total the agency has ever recorded. The figure represents a 25 percent increase over the previous year and is more than four times the amount reported in 2020. The FTC also told Congress that the actual cost is likely higher because many victims never file a report.
Structural Gaps in Corporate Fraud Management
According to the article’s author, executives are typically incentivized to prioritize revenue and margin growth, while fraud-prevention budgets are treated as cost centers. Unlike cybersecurity and anti-money-laundering programs, which have dedicated C-level owners and regulatory oversight, fraud lacks a mandated owner and is rarely examined by external examiners. In more than 80 percent of the companies the author has observed, fraud teams identified product weaknesses, but responsibility for fixing those flaws rested with product or IT groups whose own performance targets conflicted with fraud mitigation.
Emerging Threats from Generative AI
Entrust’s 2026 Identity Fraud Report found that deepfakes comprised one-in-five biometric fraud attempts last year, and the use of deepfake selfies in identity verification rose 58 percent. The report warns that AI-driven virtual assistants may soon execute transactions on behalf of customers without clear authorization, creating uncertainty over liability when an unauthorized action occurs.
Integrating Fraud into Enterprise Risk
Brent Whittington, managing director of Anti Fraud Advisors, argues that firms should move fraud out of the operations cost line and into enterprise risk. He recommends assigning a named owner, defining a risk appetite, and giving fraud a seat at product-design meetings. Metrics should expand beyond loss prevention to include approval rates, customer retention, and lifetime value.
Impact on Customer Trust and Growth
The author notes that a robust fraud program can become a growth asset: precise detection reduces false declines, streamlines onboarding, and reinforces customer confidence. Conversely, customers who experience fraud or wrongful declines are more likely to leave, increasing acquisition costs. Companies that continue to treat fraud as a tax risk higher losses, greater operational expenses, and erosion of trust.