Global financial tech platform Adyen‘s 2025 Retail Report has revealed consumer-reported fraud losses have almost doubled year-on-year, and are set to intensify as the peak shopping season approaches.
Data from Adyen’s 2025 Retail Report shows that Australians lost nearly $1,700 per person to fraud in 2025, almost double from the previous year. Baby boomers were the hardest hit, experiencing a 332% spike in losses over the same period.
The impact spans both consumers and retailers: More than a quarter of Australian retailers reported losses exceeding $1.3 million in the last 12 months. Meanwhile, nearly one in three (31 %) reported increased fraud attempts during peak season, highlighting the elevated risk that comes with heightened shopping activity.
Peak season means retailers face the dual challenge of managing soaring transaction volumes and heightened fraud risks – even as the period presents the biggest revenue opportunity for retailers. Adyen’s 2025 Retail Report reveals that 31% of Australian retailers anticipate a rise in fraudulent attacks during this time.
“As shoppers race for bargains and businesses try to keep up with increased demand, scams are becoming faster, harder to spot, and easier to believe,” said Hayley Fisher, Country Manager for Australia and New Zealand at Adyen. “That’s why it’s critical for businesses to act now and invest in advanced fraud prevention tools to protect both revenue and, more importantly, customer trust.”
|
|
Harnessing AI to outsmart AI-driven fraud threats
Adyen notes “AI is transforming retail and reshaping how Australians shop, but it’s also changing how fraudsters operate. AI-authored lures such as texts or emails are no longer riddled with spelling mistakes; they read like brand-approved marketing copy and arrive at an industrial scale. As AI‑generated scams grow more polished and widespread, retailers are under increasing pressure to evolve their fraud prevention strategies.
“Tackling fraud today requires striking a balance between security and a seamless customer experience – a balance that becomes even more fragile during peak season. Traditional fraud controls often frustrate shoppers, causing cart abandonment. But with AI-powered platforms like Adyen Uplift, retailers can fight AI with AI: stopping sophisticated scams in real time without adding friction, so true customers sail through checkout while fraud risks are managed directly.”
Fisher added: “In the past, fraud prevention often came at the expense of customer experience, with extra verification steps slowing checkout and impacting sales. Today, AI-driven tools allow retailers to combat increasingly sophisticated scams in real time, enabling transactions that are both seamless and secure.”
A multi-layered approach, leveraging signals such as online behaviour, transaction history, and loyalty data can further strengthen fraud detection before issues escalate. Nearly a third (29%) of Australian retailers are already planning to invest in AI for security and fraud prevention, highlighting the growing recognition that AI-powered technology is now essential to keep pace with evolving threats.