Cyber‑enabled fraud has turned into one of the most pervasive profit‑driven crimes worldwide, prompting the Financial Action Task Force (FATF) to sharpen its focus on how digitalisation reshapes money laundering, terrorist financing and proliferation financing risks. The inter‑governmental body’s latest paper warns that rapid advances in technology, new payment rails and virtual assets now enable criminals to operate across borders at scale, while straining existing anti‑money laundering and counter‑terrorist financing (AML/CFT) controls.Fraud Escalates with Digital AdoptionFATF notes that 156 jurisdictions, equal to 90% of those it assessed, now list fraud as a major money laundering threat. The paper cites national data showing both the speed and breadth of the rise: Singapore recorded a 61% increase in cyber‑enabled scam cases over two years, while fraud accounts for more than 40% of all crime in the United Kingdom.Some countries estimate that up to 15% of adults have fallen victim to successful cyber‑enabled fraud attempts, underscoring the scale of financial and social harm.Continue reading: How $107M Crypto Scheme Allegedly Hid Behind College Fees in South KoreaThe report links this surge to rapid digital adoption during and after the COVID‑19 pandemic, which pushed financial and non‑financial services online and opened new channels for abuse.FATF describes cyber‑enabled fraud as increasingly driven by sophisticated social engineering, with criminals exploiting digital platforms, instant payment systems and emerging tools such as AI and AI‑generated deepfakes to run scams remotely and at mass scale.Cross-Border Payment Channels According to the paper, virtual assets and faster cross‑border payment channels complicate enforcement if mitigation measures remain weak. Fraudsters can request payment in virtual assets or quickly convert fiat proceeds, often before authorities or obliged institutions can detect and freeze funds. FATF also highlights the role of transnational organized crime groups operating “scam centers”, which often sit within wider criminal ecosystems that include professional money launderers, human trafficking, drugs and other serious offences.Meanwhile, a recent separate report showed that Australian banks detected over $60 million worth of suspected fraud in the third quarter of 2025, according to BioCatch Trust Australia. The real-time intelligence-sharing network analyzed more than 180 million payments valued at over $330 billion during the period.Banks observed mixed trends in scam activity throughout 2025, with phone and purchase scams remaining the most widespread. Social-engineering fraud slightly declined early in the year, likely due to seasonal factors, while investment scams dropped overall but mainly among younger customers. In contrast, scams targeting people aged 56 and above increased by 18%.The use of Remote Access Tools fell by roughly 20% compared to 2024, indicating that fraudsters are shifting toward more scalable social-engineering tactics. This article was written by Jared Kirui at www.financemagnates.com.

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