Fraud continues to evolve, presenting ongoing challenges for organizations.
External fraud, often linked to broader financial crime activity, can be difficult to understand and assess. Managing fraud related risk often begins with understanding who you are doing business with during onboarding. It can also involve developing visibility into ownership structures, relationships, and connections that may not be immediately visible.
Reviewing whether individuals and entities appear consistent with the information provided during onboarding is a foundational step in building this understanding. However, risk does not remain static. Fraud related risk can emerge and change over time, making it important for organizations to review relevant information across the lifecycle of a relationship.
Moody’s solutions can support a data-driven approach to informing assessments of fraud-related risk.
Fraud risk can emerge at different stages of a relationship, from onboarding through ongoing review. Moody’s data and capabilities can be applied across a range of key fraud risk management use cases.
Understanding who you are doing business with at onboarding is a key step in identifying potential fraud-related risk. Building a view of identity, ownership, and associated signals can support more informed initial assessments.
Supporting capabilities:
From onboarding to investigations to ongoing monitoring, Moody’s solutions help support fraud risk management use cases, providing customers with access to broad, global data, intelligent screening capabilities, and a case management environment. These capabilities can assist teams in maintaining and reviewing risk profiles across the customer or third-party lifecycle.
Robust due diligence at the onboarding stage can help build a clearer picture of potential risk and may support efforts to identify indicators associated with first party fraud. Moody’s fraud related adverse media data can be paired with applicant information to support faster, more informed decision making.
Our solutions also provide access to intelligence via API integrations (link) with a wide range of pre connected partners, helping teams streamline fraud risk management workflows where appropriate.
Integrated intelligence can help provide visibility into ownership structures and support customer analysis of potential relationships between companies in the context of fraud related investigations. Data led insights—such as adverse media associated with fraud, conflicts of interest, or potential links to shell companies—can be incorporated into existing workflows to help inform customer assessments of risk indicators.
Build a risk profile using risk scoring and monitoring capabilities. Customers can generate a profile for a third party and review it for different purposes, including supporting KYC, AML compliance, and broader risk management activities.
Teams can conduct due diligence while AI‑supported screening helps surface potential fraud‑related risk indicators for further human analysis and review.
The regulatory landscape, financial crime risks, and third‑party relationships continue to evolve—often faster than internal systems can adapt. Moody’s for Compliance is a solution designed to support a connected, data-driven, risk‑based approach to help organizations better understand and operationalize change across their compliance processes.
Visit the Moody’s for Compliance page to learn more.
Through our partnership with GBG, a provider of fraud prevention solutions, Moody’s has integrated identity verification into its platform to help businesses streamline onboarding, support fraud risk mitigation efforts, and assist KYC and KYB processes.
How are fraud prevention teams responding to increasingly sophisticated threats? This paper offers insights and perspectives to help organizations explore this question, highlighting the role of technology, collaboration, and shared responsibility in supporting organizational long-term resilience.
Featuring perspectives from the UK’s National Crime Agency, HMRC, ING Bank, and more—you can download the paper today.
From September 1, 2025, the “Failure to Prevent Fraud” offence—introduced under the UK’s Economic Crime and Corporate Transparency Act—is expected to influence how large organizations approach fraud prevention responsibilities.
Download Moody’s eBook to explore:
Whether you are based in the UK or elsewhere, this eBook offers insights your organization may find useful.
Fraud is a growing threat to financial integrity—and the UK is responding. In this episode, Moody’s Industry Practice Lead, Ted Datta, joins host Alex Pillow to discuss the UK’s new ‘failure to prevent fraud’ offence, exploring how the legislation could impact corporate accountability and what organizations may want to consider next.
Explore how a single crypto transaction became associated with a $1.5B cybercrime event linked to the Bybit incident—illustrating how deception, digital laundering, and human error can intersect.
Chen Zamir, fraud strategy advisor and founder of the consultancy Native[risk]
David Thomas, Head of Product - Global Documents & Biometrics at GBG, and Paul Warren-Tape, Head of Risk and Compliance at IDVerse
Common types of fraud include internal fraud, committed by people inside an organization; external fraud, committed by actors outside an organization; and collusion (or hybrid) fraud, which involves internal and external actors working together.
External fraud refers to fraudulent activities committed by individuals or entities outside an organization who exploit vulnerabilities in systems, processes, or relationships to obtain assets, data, or other benefits.
Internal fraud involves individuals within an organization, while external fraud originates outside the organization. Each presents different considerations within a fraud risk management framework.
Examples may include:
Fraud is commonly considered a predicate offense to money laundering, as it can generate illicit proceeds that bad actors may attempt to disguise as legitimate funds, raising money laundering concerns.
A fraud‑related risk event generally refers to an instance where an individual or organization is associated with alleged or confirmed fraudulent activity, often identified through sources such as adverse media or other independent information, and is considered as part of a broader risk assessment process.
*This content is for informational purposes only and does not constitute legal, financial, or compliance advice.
Deepfakes aren’t a fringe internet phenomenon. They are increasingly being embedded in familiar forms of fraud and financial manipulation, reshaping how scams look, sound, and feel.
In the ever-evolving world of cybercrime, 2025 has brought a sharp focus to a once-overlooked threat: job scams. While investment and imposter scams continue to dominate headlines, a quieter but equally dangerous fraud trend is emerging—one that not only drains victims financially but also harvests their personal data for more insidious purposes.
This article investigates the current state of fraud risk, the complications of managing those risks across a third-party network, the implications of new regulation, and the proactive measures businesses are taking for active fraud prevention.
We would be happy to show you how Moody’s solutions can help support your fraud risk management efforts. Request a demo, or continue exploring how Moody’s can assist your organization
