Financial crimes caused record losses of nearly $1 trillion in the US in 2023. According to a new IDC Spotlight, money laundering and illicit funds totaled $845 billion; fraud cost consumers and businesses $138 billion — a majority ($127B) of which stemmed from payments, checking and credit card transactions.
The surge comes as digital transformation has created new vulnerabilities for financial institutions, by opening new avenues for criminals.
The popularity of cryptocurrencies and digital assets has added another layer of complexity. While blockchain technology might be more secure, it also enables anonymous transactions that make it easier for bad actors to avoid detection.
Beyond direct financial losses, the IDC paper highlights that institutions risk scrutiny and penalties if they fail to act and comply with key regulations: Bank Secrecy Act, Patriot Act, Fair Credit Reporting Act, Equal Credit Opportunity Act, Home Mortgage Disclosure Act and Truth in Lending Act.
To address modern threats and ensure compliance, financial institutions need to move beyond traditional prevention techniques to encompass adaptive fraud detection and coordinated mitigation.
What the analysts say
"The complex nature of financial crimes and their countermeasures requires continued monitoring and assessment," says Raymond Pucci, Research Director for IDC's Intelligent Finance and Customer Care Business Process Services. "Fraudsters' methods are growing sophisticated in line with advances in compliance tools, often in a cycle of action and counteraction."
So what’s the solution?
New GenAI tools automate parts of the process, quickly analyzing documents and thoroughly monitoring regulatory changes. But human oversight is critical for interpreting complex cases and making nuanced decisions.
As TaskUs Financial Crime & Compliance leaders note in the paper, "Technology can't do it all. The real magic happens when you pair these tools with skilled people who can interpret, adapt and act."
In fact, IDC points out in the paper that specialized partnerships are essential for keeping up and staying ahead.
Read the full paper
As financial crimes grow more sophisticated, success will depend on an institution’s ability to adapt. The IDC Spotlight reinforces a clear message: neither technology nor humans alone is sufficient — strengthening defenses against evolving threats lies in the combination of both.
Read the full analysis in the paper: IDC Spotlight, sponsored by TaskUs: "Using Compliance Services Solutions to Counteract Bank Fraud and Financial Crime," January 2025.
