Arkose Labs Unveils Groundbreaking Research on AI’s Impact on Digital Fraud and Cyber Defenses

53% of enterprises report losing between $10M and over $500M SAN MATEO, Calif. (November 19, 2024) – Arkose Labs, the leader in digital risk intelligence, enabling genuine users, mitigating bots and advancing fraud detection modules, today announced the release of its latest research titled: “The Intersection of AI, Digital Fraud and Cyber Defenses.” This landmark study sheds light on the full-range of challenges enterprises face as AI-powered cyberattacks rise, outpacing the deployment of effective AI-resistant defenses. Expanded data is provided so that enterprises can benchmark their activities against their industry and peers. Key findings include:

1. Enterprises are investing heavily in AI-powered solutions, which make up 21% of cybersecurity budgets today and will increase to 27% by 2026. 
2. Threats to revenue-driving websites and apps are the greatest concern with 70% of respondents across industries identifying fake account creation and account takeovers as their top concerns. 
3. AI Enthusiasts, a term coined in the report for those who are ahead of the curve in their use of AI-powered solutions, are realizing value in a number of areas, including improved threat detection and intelligence, enhanced threat defense and reduced cost of securing the business. 
4. However, only 1/5 feel very well prepared to defend against AI-powered attacks and most  are suffering real business consequences with 61% reporting higher operational costs and declines in customer acquisition.
5. Interestingly, the research exposes the emotional toll that AI attacks are having on cybersecurity practitioners who are feeling stress while executives feel confident. A gap that highlights the need for better communication and awareness. 

The research underscores the widening gap between sophisticated adversarial AI attacks and the readiness of enterprises to defend against them. Findings reveal that 88% of enterprises have observed an increase in AI-powered automated attacks over the last two years. Arkose Labs CFO Frank Teruel highlighted the urgency of addressing this issue: "Enterprises are operating in an AI economy where bad actors leverage the technology for high ROI attacks while legitimate businesses lag due to internal hurdles like governance and approval processes. This research underscores the critical need for proactive, AI-resistant solutions to protect revenue-driving applications and consumer accounts.” The research identifies a group of forward-thinking organizations, dubbed “AI Enthusiasts,” that demonstrate advanced use of AI for threat detection, response automation, and real-time monitoring. These leaders set a benchmark for readiness, proving that mature AI deployment is a viable strategy to outpace cybercriminals. "This research not only highlights the growing sophistication of AI-powered attacks but also the resilience strategies of AI Enthusiasts,” said Arkose Labs Head of Product Vikas Shetty. “Their success provides a roadmap for others to follow. At Arkose Labs, we’re committed to equipping enterprises with AI-resistant solutions that disrupt fraudsters’ ROI and ensure robust defense mechanisms for critical business operations." The report further examines industries most vulnerable to AI-powered threats, revealing concerning disparities in preparedness. While fintechs and technology companies lead in leveraging AI for security, sectors like airlines and hotels lag behind, exposing critical gaps in workforce skills and organizational readiness. Arkose Labs works and partners with the largest LLM platforms and has long been a pioneer in AI-resistant cybersecurity solutions. The Arkose MatchKey suite has proven highly effective in combating adversarial AI attacks. In recent testing, fewer than 1% of AI-powered bots bypassed MatchKey challenges, compared to a 92% success rate with non-AI-resistant systems. The full research report, additional insights and actionable recommendations are now available for download on the Arkose Labs website.

About Arkose Labs

The world’s most recognizable brands, including two of the top three banks, social media companies and tech titans, trust Arkose Labs to enable a seamless experience for genuine users and protect against online fraud, such as account takeovers, fake account creation and MFA compromise. Drawing on insights from our extensive cross-industry intelligence network—encompassing legitimate and attack patterns from the world’s leading companies—and enhanced by digital risk signals like email intelligence, behavioral biometrics and device profiling, we proactively neutralize bots and bad actors. We share comprehensive fraud detection intelligence with our customers to enhance and optimize their internal risk models. No one else provides more proactive support for internal security teams, actively takes down threat actor groups or excels like Arkose Labs in sabotaging the profitability of the most advanced, AI-driven attackers. Based in San Mateo, California, Arkose Labs operates worldwide with offices in Asia, Australia, Central America, EMEA and South America.