Sydney · October 1st, 2025
$1,700 lost per Australian to fraud in 2025 amid AI advances and peak season risks, according to Adyen
New data from Adyen’s 2025 Retail Report shows consumer-reported fraud losses in Australia have almost doubled year-on-year
A quarter of Australian businesses report losing more than $1.3 million to fraud over the past 12 months
31% of Australian retailers report seeing a rise in fraudulent attacks during the peak period
Adyen, the global financial technology platform, revealed that fraud losses in Australia are on the rise, set to intensify as the peak shopping season approaches.
Data from Adyen’s 2025 Retail Report shows that Australians lost nearly $1,700 per person to fraud in 2025, almost double from the previous year. Baby boomers were the hardest hit, experiencing a 332% spike in losses over the same period.
The impact spans both consumers and retailers: More than a quarter of Australian retailers reported losses exceeding $1.3 million in the last 12 months. Meanwhile, nearly one in three (31 %) reported increased fraud attempts during peak season, highlighting the elevated risk that comes with heightened shopping activity.
Peak season means retailers face the dual challenge of managing soaring transaction volumes and heightened fraud risks – even as the period presents the biggest revenue opportunity for retailers. Adyen’s 2025 Retail Report reveals that 31% of Australian retailers anticipate a rise in fraudulent attacks during this time.
“As shoppers race for bargains and businesses try to keep up with increased demand, scams are becoming faster, harder to spot, and easier to believe," said Hayley Fisher, Country Manager for Australia and New Zealand at Adyen. “That’s why it’s critical for businesses to act now and invest in advanced fraud prevention tools to protect both revenue and, more importantly, customer trust.”
Harnessing AI to outsmart AI-driven fraud threats
AI is transforming retail and reshaping how Australians shop, but it’s also changing how fraudsters operate. AI-authored lures such as texts or emails are no longer riddled with spelling mistakes; they read like brand-approved marketing copy and arrive at industrial scale. As AI‑generated scams grow more polished and widespread, retailers are under increasing pressure to evolve their fraud prevention strategies.
Tackling fraud today requires striking a balance between security and a seamless customer experience – a balance that becomes even more fragile during peak season. Traditional fraud controls often frustrate shoppers, causing cart abandonment. But with AI-powered platforms like Adyen Uplift, retailers can fight AI with AI: stopping sophisticated scams in real time without adding friction, so true customers sail through checkout while fraud risks are managed directly.
“In the past, fraud prevention often came at the expense of customer experience, with extra verification steps slowing checkout and impacting sales,” said Fisher. “Today, AI-driven tools allow retailers to combat increasingly sophisticated scams in real time, enabling transactions that are both seamless and secure.”
A multi-layered approach, leveraging signals such as online behaviour, transaction history, and loyalty data can further strengthen fraud detection before issues escalate. Nearly a third (29%) of Australian retailers are already planning to invest in AI for security and fraud prevention, highlighting the growing recognition that AI-powered technology is now essential to keep pace with evolving threats.
About Adyen Adyen (AMS: ADYEN) is the financial technology platform of choice for leading companies. By providing end-to-end payments capabilities, data-driven insights, and financial products in a single global solution, Adyen helps businesses achieve their ambitions faster. Adyen works with the likes of Lorna Jane, the Cotton On Group, True Alliance, Nando’s, Freelancer.com, Kogan.com, Budgy Smuggler, Movember, Showpo, Rodd & Gunn, and Jurlique.
Research methodology Consumer research The research was conducted by Censuswide, among a sample of 40,000 Nat Rep Consumers across Australia, France, Germany, Japan, Italy, Spain, Sweden, UK, Brazil, Mexico, Canada, USA, Netherlands, Hong Kong, Malaysia, Singapore, Czech Republic, Denmark, Estonia, Ireland, Latvia, Lithuania, Norway, Poland, Portugal, UAE and Belgium (Aged 18+). The data was collected between 16.04.2025 - 8.05.2025.
Merchants research The research was conducted by Censuswide, among a sample of 8,102 Hospitality Decision Makers (Aged 18+) across the UK, USA, Singapore, Canada, Australia, Belgium, Brazil, Denmark, Estonia, France, Germany, Malaysia, Norway, Poland, Spain, Czech Republic, Hong Kong, Italy, Mexico, UAE, Netherlands, Ireland, Japan, Latvia, Lithuania, Portugal, and Sweden. The data was collected between 16.04.2025 - 8.05.2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.
*Percentage increases were calculated by comparing those who selected any “Yes” answer options to the use of AI against those who answered that they had used AI “for the first time over the past 12 months”