#11168 min
What’s up fraud fighters, and welcome back to Fraud Forward!
I asked a room full of fraud professionals one question: describe the current state of fraud in one word.
And the answers? Acceleration. Chaos. Explosive. Scary. Unmanageable.
No one said stable. No one said under control.
So in this episode, I’m breaking down what those answers tell us about evolving fraud trends, the current fraud landscape, and the pressure fraud teams are feeling across banking, financial services, and every channel where fraud is moving faster than our systems were built to handle.
This isn’t just about the latest fraud trends. This is about fraud attack evolution, AI-driven fraud attacks, organized fraud trends, and the operational reality of trying to protect real people in real time.
What you will hear in this episode:
- A structured breakdown of evolving fraud trends from fraud professionals on the front lines
- A look at the latest fraud trends shaping banking, payments, and financial services
- Insight into how AI-driven fraud attacks and automation are accelerating scam operations
- Discussion of cross-channel fraud trends, from impersonation scams to social engineering fraud trends
- A focused look at fraud operations trends and why teams feel more reactive than proactive
- Practical fraud prevention strategy insights for adapting to faster, more coordinated attacks
- A call for stronger collaboration, benchmarking, and shared intelligence across the fraud ecosystem
This is one of those episodes where we move from what fraud feels like to what we actually need to do about it.
Who should listen:
- Financial institution leaders and fraud professionals
- Risk, compliance, and cybersecurity teams
- Fraud operations, payments, and product leaders
- Banking and credit union teams tracking fraud trends in financial services
- Industry advocates and fraud community members
- Anyone trying to understand modern fraud trends and how fast they are changing
If you’re in this space and you’ve felt that pressure, this episode is for you. Because we’re all dealing with it.
Episode notes
This episode is built around one question: if you had to describe fraud right now in one word, what would it be?
Acceleration. Explosive. Complex. Fractured. Scary. The answers are not just emotional reactions, they are signals of a shifting fraud ecosystem.
I’m talking through what those responses reveal about evolving fraud trends, including AI-driven fraud attacks, impersonation scam trends, social engineering fraud trends, and the fraud scaling trends hitting financial institutions right now.
We’ll also get into why fraud prevention can’t stay purely reactive. The current fraud landscape is too fast, too connected, and too cross-channel for teams to wait until losses show up and then respond. We need better benchmarking, stronger collaboration, and clearer fraud prevention strategy insights that help teams understand where they stand and what they need to change.
Behind every alert, every scam, and every case is a person who deserves protection.
Key takeaways
- Evolving fraud trends are moving faster than many teams can comfortably manage.
- The latest fraud trends are being shaped by AI, automation, and organized fraud operations.
- Fraud trends in banking and financial services are becoming more complex, cross-channel, and coordinated.
- Reactive vs proactive fraud prevention is no longer just a strategy discussion, it is an operational necessity.
- Impersonation scam trends and social engineering fraud trends are growing because criminals are studying what works.
- Fraud operations trends show that teams need better data, stronger benchmarks, and more shared intelligence.
- Modern fraud trends require collaboration across institutions, teams, channels, and the broader fraud ecosystem.
This isn’t just about fighting fraud better. It’s about doing it responsibly, together.
This episode is a real look at where we are right now as an industry.
The fraud attack evolution we’re seeing is fast, complex, and honestly, a lot. But naming that pressure matters, because it gives us a place to start.
If we can understand the current fraud landscape more clearly, share what we’re seeing, and move from reactive response toward proactive prevention, we can build stronger defenses across the entire fraud ecosystem.
This work matters. The people behind it matter. And the people we protect matter even more.
Stay vigilant, stay informed, and keep moving fraud forward.
Episode transcript
Hailey Windham
00:05
What's up, fraud fighters? I bet you thought that this was going to be episode 100. Well, it's not. I have a couple of tricks up my sleeve, and I'm so excited for episode 100. But it's not happening yet. But it will be a town hall, a live town hall, and I'm very excited for you all to see the guest lineup that I have selected for you all.
Hailey Windham
00:26
And truly, it's going to be one of those conversations that I can't wait to have. So okay, back to today's episode. So this is episode 99.1, 2BC, something. So at Fraud Fight Club, I asked a simple question. It was, if you had to describe the current state of fraud in one word, what would it be? And the answers, they didn't match, but somehow they all told the same story.
Hailey Windham
00:51
So let's start there. Acceleration. Ever-changing. Chaos. Scary. Nuts. Unmanageable. Complex. Insane. Growing. Challenging. Constantly changing. Fractured. Complex. Job security. Explosive, actually.
Hailey Windham
01:09
Here's what stood out to me. No one hesitated. No one said stable. No one said manageable. No one said it's under control. Every single answer pointed to movement, speed, change, pressure. So let's break that down. Acceleration.
Guest
01:09
I would say infused by AI. Infused by orchestrated processes that criminals are now executing. So we know about the scam compounds in Cambodia, Southeast Asia, now proliferating all over the world.
Guest
01:37
That is going to be very much accelerated by AI, automation and AI. Criminals are going to deploy all of that, but not only the AI component, just getting better. So one common thread that I heard at this conference is impersonation scams are really growing, and less of the other scams, less of the job scams, less of the toll scams, maybe.
Guest
01:59
And I think that's because the criminals are doing analytics, and they're finding out that those scams are really the authority scams in the U.S., at least, are very, very effective. Yeah. So they're doing less of the others and more of what works. So they're just learning, taking insights, sharing data, and doing what works for them to, unfortunately, scam our population.
Guest
02:20
Explosive. Actually, this is the highest volume of fraud I've seen in my 28 years in the fraud industry. It's evolving and constantly changing, and it just is not going away. For every step we make, they try to make two steps in front of us. We come back at it, and we're fighting the good fight.
Guest
02:37
But it is explosive at the moment.
Guest
02:37
Growing. Yeah, for sure. For sure. It is growing exponentially, I think.
Hailey Windham
02:37
Yeah. And keeping up is hard.
Guest
02:37
Yes, yes, yes.
Hailey Windham
02:37
All right. So you heard words like acceleration, explosive, growing. That's not just about more fraud. That's about how fast it's evolving. AI, automation, organized operations. Fraud isn't just increasing, it's scaling, and not in a slow, predictable way.
Guest
03:05
Complex. Oh, yeah. For sure. For sure. I feel like, number one, you have to have that holistic understanding of not only payments, but your infrastructure, plus all the fraud threats. Plus, like, how do risk and payments and product and member service really all intertwine? So that's that complex word. I think, really, I was just talking to the head of one of the largest payment organizations in the world.
Guest
03:30
And no longer are we just analytics or investigators. It's always the end-to-end lifecycle, from data and analytics all the way to, like, almost collections. It's the full lifecycle of everything that banking has all in one team. Of course it's hard. And then our threats are hard, and they're doing evil things. And then it's not just like we can put a widget in. It's like it's just from case management all the way to the front end.
Guest
03:51
It's amazing. What a great field. Seriously. But it is tough.
Guest
03:51
Fraud today, I would say fractured, quite honestly. I think that there's been a lot of conversation around data sharing and trying to, you know, bring together various operators, financial institutions, organizations, and trying to combat fraud. But, you know, we're all still kind of siloed, and we're also siloed in our own institutions as well.
Guest
04:17
And I think that's probably a fair way to summarize it. But, you know, the other side of that, I guess I would say, is hopeful. I think that we all understand that that's the direction that we want to take, and we all just need to keep being persistent and push. And we'll eventually get to a point where we're together.
Guest
04:37
Ever-changing. One word, if I hyphenate it. Yeah, yeah. Yes, I would just say ever-changing. It's just constantly evolving, and it's kind of fun trying to keep up with these different trends, these different tactics that these fraudsters are using. Yeah. For me, it's like fraud fighting is the ultimate job for those with ADHD because we never know what we're walking into.
Guest
04:57
So it's always a challenge, and it's always fun. Keeps us on our toes. Always exciting. Always exciting.
Guest
04:57
Complex would probably be the easiest and safest way to explain it. Yeah. You know, a fraudster can use 50 different models, or 50 different fraudsters can use 50 different AI models, and you have to defend against all of them. Yeah. And that's just one form of fraud that we have to combat.
Guest
05:19
So figuring out how to combat all the different types of fraud through every type of channel, it's just very complex and costly.
Hailey Windham
05:19
Then you get complex, fractured, ever-changing. This is where fraud stops being a single problem and starts becoming a system. Different channels, different tactics, different gaps across the organizations. And no one owns it all.
Guest
05:42
Chaos. Yeah, I think simply chaos. But at the same time, it's like the ever-evolving world of how do we keep up?
Hailey Windham
05:42
Right, right.
Guest
05:42
And my second choice would have been like accelerating.
Hailey Windham
05:42
Oh yeah. Absolutely. Accelerating. Yeah. Absolutely.
Guest
05:42
Scary.
Hailey Windham
05:42
I would like you to expand on that just a little bit because I agree, but I'd like to know in your world why is it scary?
Guest
06:12
I mean, there are a lot of jobs that you go to every day and you know what to expect, and you can build your day off of routine and expectation. This isn't one of those jobs, right? You get comfortable, and things change. And so what makes it scary is not knowing where it's going to change, when it's going to change.
Guest
06:30
And so much of our job is reactive, and you don't know the scale that you're reacting to, the thing that you're reacting to. You're just hoping you can limit it. So hopefully, one day we turn from this reactive approach to a more proactive approach and limiting. And I think things like Fraud Fight Club help us do just that.
Guest
06:48
Insane.
Hailey Windham
06:48
I concur. And then there are words that hit differently. Chaos. Scary. Insane. That's not technical language. That is what it feels like to sit in these roles right now, to know you're reacting more than you want to, to know that the rules just keep changing, to know the stakes are personal for people on the other side.
Hailey Windham
07:13
What's up, fraud fighters? Quick pause real quick because I want to bring you into a conversation that I've been having with a lot of credit unions lately, and it all starts the same way. They're doing the work. They're fighting fraud every single day. But when leadership asks, how do we compare? That's where things get kind of quiet, right? Not because they don't know fraud, but because they don't have the data to prove it, right.
Hailey Windham
07:33
And that's the gap. We don't need more opinions in this industry. Trust me, there's enough. But what we need is real benchmarks from real institutions. And that's exactly why I launched the FI Fraud benchmarking survey, built specifically for community banks and credit unions. This isn't vendor-driven. This isn't sales disguised as a report. This is by fraud fighters.
Hailey Windham
07:53
For fraud fighters, it's about giving you something you can actually take back to your executives and say, here's where we stand, and here's where we're behind, and here's what we need to do to fix it. Because reporting tells your story, but benchmarking tells if it's a good story. And I'm not the only one who sees the impact that this could have.
Hailey Windham
08:13
I asked Jen Lamont what this kind of data could mean for teams like yours. And here's what she said.
Jen Lamont
08:13
I think something for us to really fully tell this story to our executives about the resources that we need and why, not only how we're doing currently, but are we comparing ourselves in a positive manner to other institutions our size? So I think it's going to be really, really powerful to help us tell our story.
Hailey Windham
08:32
That's it right there. This isn't just about data. It's about having a voice at the table. If you're ready to be a part of it, check out the link in the show notes. Let's build something that this industry can actually use.
Hailey Windham
08:49
Different words, same pressure. And if you step back, this isn't just a fraud problem anymore. It's an operating environment.
Guest
08:49
Unimaginable. Yeah. And the reason I say that is that AI, a year ago they started to talk about it, and then now I can't imagine my life without it because it is helping us develop the fraud industry. Not saying that it is making it so much easier to catch the fraud.
Guest
09:12
Unfortunately, it's job security. I was joking with my wife and saying, you know, funerals and fraud, those two things are never going away, unfortunately.
Hailey Windham
09:12
So here's what I want you to take away from this. Fraud looks different depending on where you sit, but the theme is consistent. It's moving faster than we're comfortable with. And that's exactly why what happens next matters.
Hailey Windham
09:30
Because in the next episode, 99.2, we're shifting from what fraud feels like to what fraud teams are actually doing about it.
Guest
09:30
Nuts. I think it's like pretty crazy. I've never seen so much happening at once with AI. Yeah, with what's happening in Southeast Asia that's mushrooming, with things that are happening in scams, all the stuff on social media for first-party fraud.
Guest
09:59
There's so much happening at once that it's almost like a tidal wave of fraud is hitting everybody. And it's getting that much more difficult.
Hailey Windham
09:59
Yeah, yeah, for sure. Okay, guys, you know what's coming. Stay vigilant, stay informed, and keep moving fraud forward.
Hailey Windham
10:21
Thanks for listening to Fraud Forward. Remember, every conversation, every connection, and every insight moves our industry one step closer to stronger fraud defenses. If today's episode sparked an idea, share it with your team or tag me on LinkedIn. I love hearing how you're moving fraud forward in your own organization. Until next time, stay curious, stay resilient, and keep moving fraud forward.
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