AI-Fuelled Crime Drives Global Illicit Financial Flows to $4.4 Trillion

Illicit financial activity reached an estimated $4.4 trillion in 2025, according to new research from Nasdaq Verafin. The firm’s latest data indicates that global losses from fraud scams and bank fraud schemes alone amounted to $579.4 billion, marking a sharp escalation in the scale and sophistication of financial crime.

Background and Context

The findings, detailed in the 2026 Global Financial Crime Report, suggest a rapid expansion of the criminal economy. Nasdaq Verafin estimates that illicit activity has increased by $1.3 trillion since 2023, representing a compound annual growth rate of 19.2% over two years.

The report categorizes the sources of these funds, identifying drug trafficking-related activity at $1.1 trillion with an annualised growth of 17.1%. Human trafficking-related illicit flows are estimated at $528.5 billion, growing at 23.5% annually. While smaller in absolute terms, terrorist financing remains a critical concern, estimated at $16.2 billion with an annualised growth rate of 18.8%.

Key Figures and Entities

The report was produced by Nasdaq Verafin, a firm providing financial crime management software used by more than 2,750 financial institutions, in collaboration with consulting firms Celent and Oliver Wyman.

Stephanie Champion, Executive Vice President and Head of Nasdaq Verafin, described the current landscape as a "full-blown financial crime crisis." She noted that criminal networks are leveraging artificial intelligence to "super-charge scam playbooks" and operate with a scale and coordination previously reserved for multinational corporations.

Alongside the report's release, the firm announced a pledge to collaborate with the United Nations Office on Drugs and Crime (UNODC) to mobilise private sector efforts against financial crime and fraud.

Legal and Financial Mechanisms

The rapid rise in fraud scams, which reached $62 billion in losses, is directly linked to the criminal adoption of artificial intelligence and other technological advances. Survey results indicate that 90% of financial crime professionals have observed an increase in AI-driven attacks at their institutions over the past two years.

According to the report, the combination of higher transaction volumes, faster-evolving techniques, and broader AI usage presents a systemic challenge for banks. Fraud scams are now rising at more than twice the rate of traditional bank fraud. The authors argue that while AI has become a potent tool for offenders, the same technology could serve as a critical asset for defenders if deployed effectively with improved information sharing.

International Implications and Policy Response

The report positions financial institutions as the primary line of defense but emphasizes that banks cannot address the issue in isolation. It calls for coordinated action across sectors exposed to the financial crime ecosystem, advocating for a blueprint of collaboration between public and private bodies.

As part of the response to these trends, Nasdaq Verafin and the UNODC are initiating a programme of workshops and roundtables for private sector leaders. This effort begins with an in-person summit on 20 October at the Nasdaq MarketSite in New York, aimed at improving cross-sector collaboration on fraud, scams, and money laundering.

Sources

This report draws on the 2026 Global Financial Crime Report published by Nasdaq Verafin, including data modelling, a survey of over 500 financial crime professionals, and executive interviews conducted in collaboration with Celent and Oliver Wyman.