New Team8 Report Assesses the Current Fraud Landscape and Lays Out Roadmap to Combat AI-Powered Fraud and Scams

Team8 a global venture fund that builds and invests in companies across cybersecurity, data, AI, fintech, and digital health, as well as their intersections, unveiled today its latest report, Fraud Exposed: An In-Depth Look at AI and Other Disruptive Trends and Technologies Shaping the Fraud Landscape. This comprehensive analysis provides a roadmap for how AI and other disruptive technologies are reshaping the fraud landscape while offering practical insights and innovative frameworks to empower the financial services industry. The publication was written by Team8’s fintech leadership, with guest commentary provided by Mastercard, Moody’s, AWS, Alloy, Ballerine, and Charm Security.

The report highlights the growing fusion between fraud prevention and cybersecurity teams within large enterprises, and the potential for AI to power a new generation of fraud defenses that are more adaptive than the AI tools employed by criminals. It also examines how evolving regulations are driving innovation and why faster, more convenient payment technologies amplify the urgency for new fraud prevention frameworks and solutions.

Fraud Exposed draws on insights from Team8’s cross-domain experience in cyber and fintech, showcasing the value of Team8’s unique “attacker’s perspective” methodology. Rooted in extensive red team experience, this approach provides a window into how fraudsters and scammers think, operate, and adapt. By factoring this in, organizations can anticipate vulnerabilities and preempt attacks before they occur.

Fraud isn’t just a technological issue. The report reveals how fraudsters and scammers are moving away from attacking systems and devices to exploiting the weakest link in security: humans. Through social engineering and deceptive tactics, scammers target human vulnerabilities, making individuals a key line of defense. By integrating data analytics and psychological insights into fraud prevention solutions, organizations can build resilient systems capable of outpacing even the most sophisticated scammers.

“The stakes have never been higher as fraudsters increasingly harness advanced technologies like AI to bypass traditional defenses and target users on platforms outside the direct oversight or security perimeter of banks,” said Ronen Assia, Managing Partner at Team8. “With the rise of real-time and account-to-account payments, generative AI, and mounting regulatory pressures, the financial industry must embrace proactive, intelligence-driven strategies to protect customers and build resilience.”

Another key insight from the report emphasizes the shift to a narrative-based approach to fraud prevention. Fraud should no longer be seen as a standalone event; instead, solution providers must assess it across its entire lifecycle, from reconnaissance and escalation to exploitation.

About the Authors:

Team8’s fintech domain experts partnered with leading industry figures to curate a comprehensive roadmap for fintech innovation focused on fraud prevention. Collaborators included:

• Johan Gerber, Executive VP & Head of Security Solutions at Mastercard
• Laura Spiekerman, President and Co-founder of Alloy
• Vick Panwar, Principal, Global Banking Strategy & Development, AWS
• Alex Pillow, Senior Director, Commercial Strategy at Moody’s
• Ron Shevlin, Managing Director, and Chief Research Officer at Cornerstone Advisors
• Noam Izhaki, Co-founder and CEO of Ballerine
• Roy Zur, Co-founder and CEO of Charm Security
• Liran Amrany, Former Partner at Team8 and JP Morgan Executive

The report also spotlights Charm Security, the newest fintech startup emerging from Team8’s venture creation model, leveraging cross-disciplinary expertise and a fraudster’s perspective to address the growing threat of financial scams.

For the full report and insights into the future of fraud prevention, visit: https://team8.vc/fraud-exposed/