Top Fraud Trends Affecting High-Risk Industries in 2025

As the digital economy expands, so does the sophistication of fraud. For high-risk industries such as iGaming, adult entertainment, cannabis, crypto, and fintech, the threat landscape is evolving rapidly. In 2025, staying ahead of fraud isn’t just about protection but survival. 

1. Synthetic Identity Fraud on the Rise

In 2025, fraudsters are no longer just stealing real identities but creating entirely fake ones. Synthetic identity fraud, where criminals combine real and fabricated personal data to create new “people,” is projected to cost businesses billions.

Why It Hits High-Risk Sectors Hard:

High-risk industries often have more lenient onboarding thresholds or are under pressure to move fast. This makes them prime targets for synthetic ID schemes.

Solution:

• Implement AI-powered identity verification

• Use multi-layered KYC checks and biometric validation

  
  

2. Chargeback Abuse Is Becoming More Sophisticated

Friendly fraud isn’t so friendly anymore. In 2025, chargeback abuse is evolving with tools that mimic legitimate user behavior—making it harder to detect.

iGaming and Adult Sites Are Especially Vulnerable:

With digital goods and subscriptions, users often claim they didn’t receive a service or didn’t authorize a purchase, even when they did.

Solution:

• Use chargeback prevention tools and alerts

• Integrate real-time behavioral analytics

• Keep clean and clear transaction descriptors

3. Deepfake and AI-Generated Fraud

Deepfakes and AI-generated content are now being used to bypass verification systems, submit fake documents, and even manipulate video KYC processes.

Where It’s Showing Up:

Crypto onboarding, adult content platform creator verifications, and even cannabis e-commerce license renewals are being targeted.

Solution:

• Invest in liveness detection and deepfake recognition

• Educate compliance teams to spot red flags in user verification

4. Account Takeovers (ATOs) via API Exploits

High-risk platforms rely heavily on APIs for payments, user data syncing, and third-party tools. But in 2025, unsecured APIs are a top vulnerability being exploited in ATO fraud.

What’s Happening:

Hackers are using credential stuffing or zero-day API exploits to hijack accounts and drain funds or misuse subscriptions.

Solution:

• Use API firewalls and zero-trust architectures

• Implement multi-factor authentication (MFA)

• Regularly audit endpoints

5. Money Muling via High-Risk Platforms

In industries like adult content or iGaming, fraudsters are recruiting unwitting users to act as “money mules” moving illicit funds through legitimate platforms.

How It Works:

They’ll use stolen cards to fund accounts and request withdrawals via multiple wallets, making it hard to trace and flag.

Solution:

• Monitor unusual withdrawal behaviors

• Automate transaction flagging based on velocity, location, and patterns

• Train customer support on identifying mule behavior

6. Global Regulation Manipulation

Fraudsters are exploiting regulatory loopholes across borders, especially in emerging markets where enforcement may be lax.

Affected Industries:

• Cannabis businesses navigating fragmented state-by-state rules

• iGaming platforms registering in light-touch jurisdictions

• Adult content sites use complex corporate structures to mask their owners

Solution:

• Work with legal compliance consultants to review your operational exposure

• Choose payment providers with global fraud oversight

• Embrace a compliance-first mindset, even if local regulations are outdated

How High-Risk Industries Can Stay Protected

In 2025, fraud isn’t going away; it’s evolving. For high-risk businesses, the key lies in staying proactive, investing in adaptive technologies, and working with partners who specialize in your sector.

At Pay Conults, we help high-risk businesses detect and prevent fraud in real time—whether you're in iGaming, adult content, cannabis, or crypto.

Looking for tailored fraud prevention strategies? Let’s talk.