Nasdaq Study: Growth in International Financial Crime Continues to Accelerate – Germany is EU capital for romance and impersonation scams

 

Nasdaq Study: Growth in International Financial Crime Continues to Accelerate – Germany is EU capital for romance and impersonation scams

• Nasdaq group company Verafin publishes “Global Financial Crime Report”
• USD 4.4 trillion in illicit funds flows through financial systems worldwide
• Financial crime in Germany continues to grow: financial fraud against consumers and businesses sees compound annual growth rate of 28%, while money laundering increases by 21% p.a.
• Across the EU, losses from money laundering amount to USD 672 billion, with Germany accounting for 18%
• Financial crime is becoming increasingly complex: AI is more frequently used for fraud, yet also forms part of the solution in combating financial crime

Frankfurt/ New York, 11 March 2026 – Illegal financial activity worldwide is set to reach a new peak of USD 4.4 trillion in 2025. Compared with 2023, this represents an increase of USD 1.3 trillion. In addition, losses caused by fraud affecting banks, private individuals and businesses have risen at a compound annual growth rate of 9.2% to USD 579.4 billion between 2023 and 2025. These are the findings of the latest edition of the “Global Financial Crime Report” published by Nasdaq group company Verafin.

“We are currently in the midst of a full-blown financial crime crisis, powered by criminal networks that are leveraging AI to super-charge scam playbooks and operating with the scale and coordination of multinational corporations,” said Stephanie Champion, Executive Vice President and Head of Nasdaq Verafin.

“While AI has emerged as a key tool for criminals, the industry recognizes the potential of the technology to become its most valuable asset in the fight financial crime. Cutting-edge technology, combined with improved public-private and private-private collaboration create a network effect, magnifying the reach of our collective efforts and helping remove criminals from the financial system for good.” 

Germany Remains a European Hotspot for Romance and Confidence Scams

Financial criminals who use confidence and romance scams to defraud money from Europeans are disproportionately targeting Germans. The data shows that the value of reported confidence and romance scams in Germany reached $431m in 2025, accounting for 86% of the total reported in the EU ($501m). 

The report shows consumer and business fraud is the fastest-growing type of fraud, growing 28% year-on-year in Germany since 2023. This compares to a 5% compound annual growth rate for bank fraud. In comparison, across the EU, consumer and business fraud has grown 17% year-on-year since 2023, while bank fraud has remained steady. 

Kamlesh Harry, Principle Strategic Advisor at Nasdaq Verafin said: 

“Our data shows that Germany has emerged as the EU’s leading hotspot for reported impersonation and confidence scams, with this type of fraud accelerating at an alarming rate. As bank security becomes increasingly robust and harder to breach, criminals are shifting their focus toward directly manipulating consumers into transferring funds themselves.” 

Money Laundering and Fraud Continue to Rise Across Europe

Illegal financial activity in Europe includes money laundering, drug trafficking, terrorist financing, corruption and organised crime. In 2025, the total value of such illicit activities in Europe reached USD 672.4 billion, reflecting a compound annual growth of 24% over the past two years.

Losses from bank and credit card fraud amounted to USD 55.2 billion and remained largely unchanged, while consumers and businesses lost a further USD 8.9 billion through financial fraud. Here, the compound annual growth rate over the past two years was 17%.

AI: A Challenge but Also Part of the Solution

The Nasdaq Verafin study also shows that, given the enormous scale of losses, the global financial industry must do more to combat financial crime effectively. However, there is strong willingness to invest significantly in technology in the coming years to prevent financial crime more effectively.

The role of AI presents a complex picture: criminals are increasingly deploying AI for illicit financial activities, while financial institutions can use AI as a powerful tool to combat them.

The report combines extensive data analysis with a survey of 505 financial crime compliance professionals at financial institutions across Europe.

Across the industry, awareness is growing of AI’s significant role in combating financial crime efficiently while maintaining low operating costs. Almost nine in ten respondents (89%) stated that they are either already using AI to support their workforce and processes or are actively evaluating its deployment. This is reflected in planned investment: 79% intend to increase AI spending over the next two years.

Kamlesh Harry added:

“As one of Europe’s wealthiest countries and a major financial hub, Germany is especially an attractive target for organised criminal groups. Advances in AI are also empowering overseas fraudsters to overcome language barriers and deploy highly convincing, personalised scams against German victims.

“This trend highlights the urgent need for coordinated action across industry, sectors, regulators, government and law enforcement to safeguard consumers in an era where fraud is automated, scalable and disturbingly authentic.”

The full report “Global Financial Crime Report” is available for download at https://verafin.com/nasdaq-verafin-global-financial-crime-report.

 

About Nasdaq Verafin

Nasdaq Verafin provides Financial Crime Management Technology solutions for Fraud Detection and Management, AML/CFT Compliance and Management, High Risk Customer Management, Sanctions Screening and Management, and Information Sharing. More than 2,750 financial institutions, representing $11 trillion in collective assets, use Nasdaq Verafin to prevent fraud and strengthen AML/CFT efforts. Visit www.verafin.com to learn more. 

 

German Press Contact:

edicto GmbH

Ralf Droz/ Svenja Liebig

T: +49 69 905 505 56

Nasdaq@edicto.de

 

 

2025 in million USD Global EU Germany France UK Consumer & Business Fraud (Total) 62.018 8.875 2.972 1.588 4.042 Bank Fraud (Total) 517.376 55.218 12.640 24.399 39.219 Money Laundering (Total) 4.401.919 672.412 189.764 118.903 151.087 Romance & Confidence Fraud 5.182 501 431 22 305 Compound Annual Growth Rate (2023-2025) Consumer & Business Fraud (Total) 20% 17% 28% 17% 22% Bank Fraud (Total) 10% 0,18% 5% -1% 13% Money Laundering (Total) 21% 24% 21% 22% 24% Romance & Confidence Fraud 20% 18% 28% 24% 30%