Financial crime threats to rise in 2025, Kroll report warns

One of the primary drivers is the rapid advancement of AI.

Financial crime risk is expected to increase in 2025, with 70% of executives anticipating heightened threats compared to 67% in 2023, according to Kroll’s 2025 Financial Crime Report. 

Despite this, only 23% of surveyed business leaders believe their organisation’s compliance programs are “very effective” in combating financial crime. 

The report, based on a survey of over 600 executives from sectors including insurance, financial services, and legal services, highlights growing concerns over AI-powered cybercrime, evolving regulations, and geopolitical instability.

One of the primary drivers of increased financial crime risk is the rapid advancement of technology, particularly AI, which is being exploited by cybercriminals. 

Cyberattacks and the malicious use of AI are cited as top factors contributing to the anticipated rise in financial crime.

Additionally, the adoption of digital currencies is creating new challenges, as 29% of respondents already engage in crypto transactions, whilst another 32% are considering doing so. 

However, 59% of executives view cryptocurrency as a moderate or significant financial crime threat.

On a positive note, technology is also seen as a crucial tool in combating financial crime.

Fifty-seven percent of respondents believe that AI will enhance their compliance programs, and nearly half expect to invest in AI-driven solutions and other technologies to mitigate risks. 

Regulatory collaboration is expected to intensify, with 62% of executives predicting increased cooperation between regulators and financial institutions in the next 12 months.

Moreover, there is a growing expectation for stricter corporate transparency requirements and heightened enforcement actions targeting financial crimes.