Verification services company Sumsub employs Volt's Open Banking functionalities to bolster its capabilities.
Europe Battles Escalating Fraud with AI-Powered Solutions
Fraud in Europe has seen a significant surge recently, with various reports indicating sharp rises in different fraud types across countries. According to recent data, Ireland experienced a 73% increase in fraud offences in the first half of 2025 compared to the same period in 2024, with some categories like forgery rising by 200%. England and Wales recorded nearly 1.28 million fraud and computer misuse offences in 2024/25, marking the highest levels recorded to date. Similarly, Europe-wide potential fraud reports also rose, with 164 reports in June 2025 compared to 129 in May, many involving food fraud and cross-border issues.
In response to this increase, AI-powered fraud detection and prevention solutions are becoming integral to European anti-fraud strategies. The European Commission and member states highlight digitalization and innovative technologies, including artificial intelligence, as key elements in strengthening fraud governance and enabling faster detection and recovery of compromised financial resources. This includes using AI to analyze transaction patterns, detect anomalies, and enhance investigative capacity.
Regulatory frameworks such as PSD3 and the Payment Services Regulation (PSR) strengthen fraud prevention by mandating several measures. Payment Service Providers (PSPs) are required to analyze customer transaction data for abnormal patterns and retain data for up to 10 years. Mandatory sharing of fraud-related information among PSPs through an IT platform established by the European Banking Authority (EBA) helps to identify repeat offenders and emerging fraud patterns. PSPs are also expected to report annual fraud statistics to national authorities and EU bodies for improved monitoring and transparency. Additionally, consumer awareness campaigns and employee training programs aimed at evolving fraud risks are being implemented, with guidance standardized by the EBA.
Key recent strategies focus on integrating AI and big data analytics in fraud detection to improve prediction accuracy, enable real-time monitoring, and reduce false positives. Member states are building capacity to leverage these technologies optimally, aligning with broader EU anti-fraud action plans and digital transformation agendas.
One notable partnership in this context is the strategic alliance between Volt and Sumsub. Volt's Open Banking capabilities will be used by Sumsub for 'Penny Drop Verification' flow, which directs end users to their banking app for a 1c payment via Volt's hosted checkout. This partnership aims to improve Sumsub's onboarding and identity verification offerings, especially in light of the increasing threats of advanced fraud attempts. Ensuring the validity of a qualified electronic signature (QES) signatory's information is essential for businesses onboarding new users at scale, according to Volt and Sumsub.
The partnership between Volt and Sumsub exemplifies Volt's commitment to partnering with innovative brands and driving innovation forward in the verification and onboarding process. Volt, which enables payments in 31 markets across the UK, the EU, Brazil, and Australia, has offices in London, Berlin, Warsaw, Kraków, Sydney, and São Paulo. Europe saw a second-highest increase in fraud globally, with cases surging 150% year-over-year, according to Andrew Novoselsky, chief product officer at Sumsub. Deepfake-driven fraud has increased 4x worldwide from 2023 to 2024, underscoring the urgency for advanced fraud detection and prevention measures.
This combined approach aims to not only improve detection and prevention but also enhance cooperation and transparency across the European fraud prevention landscape.
- Partnerships, such as the one between Volt and Sumsub, are integral to innovation in fraud detection and prevention, particularly in light of the escalating fraud in Europe.
- The European Commission, in its anti-fraud strategies, emphasizes the role of digitalization, innovative technologies like artificial intelligence, and open banking to strengthen fraud governance.
- Regulatory frameworks like PSD3 and PSR mandate payment service providers (PSPs) to analyze customer data and retain it for up to 10 years to help in the detection and recovery of compromised financial resources.
- The integration of AI and big data analytics in fraud detection is a key strategy in enhancing prediction accuracy, real-time monitoring, and reducing false positives across Europe.
- The global finance business landscape is increasingly leveraging technology, as demonstrated by Volt's operations spanning multiple countries including the UK, EU, Brazil, and Australia, to combat the rising threat of fraud across the globe, with Europe seeing a second-highest increase.
