$1.5+bn in Fraud Blocked in 2025 as Australian Lenders Reported Increasing Credit Application Manipulation and Money Mule activity

Equifax Fraud Index Report – 2025 Year in Review

• First Party Fraud Growth increased +25.5% (vs same time in 2024)
• Money Mule Growth increased +90.9% (vs same time in 2024)
• Credit Product Fraud instances increased by +11.1%  (vs same time in 2024)
• Non-Credit Product Fraud Instances decreased by -1.1%  (vs same time in 2024)

SYDNEY –  Wednesday 18 March 2026 – New insights released today from the Equifax Fraud Index Report – 2025 year in review reveals Australian lenders spent 2025 fighting an ongoing battle against fraudsters, successfully preventing over $1.5 billion worth of reported fraudulent financial applications before they occurred. 

As cost-of-living pressures continue, the report highlights a shift toward first-party fraud and money muling, supported by the widespread availability of Artificial Intelligence (AI) tools that make falsifying documents easier than ever.

First Party Fraud Rises as Financial Stress and AI Join Forces 

The Equifax Fraud Index Report suggests that rising financial pressure could be influencing a 25.5% year-on-year increase in first party fraud, where individuals manipulate their own loan applications to secure credit.

Tehani Legeay, General Manager of Digital Identity and Fraud Services at Equifax says fraud isn't always a high-tech syndicate operation; sometimes, it happens at an individual level.

“We’ve seen a significant spike in loan manipulations. Easy-to-use and inexpensive AI tools can now produce convincing fake documents, which may increase the temptation to falsify information to secure credit, especially amidst heightening economic pressures.”

While fraudulent attempts are rising, so is the focus of businesses on preventing fraud activity. 

“While the volume of overall fraudulent attempts and reported instances increased over the past year, it should also be recognised that prevention tactics during this time saved over $1.5 billion worth of fraudulent credit applications,” said Tehani Legeay. 

“In addition, we’ve observed that while Transaction Accounts and Credit Cards saw a higher volume of fraud incidents, Mortgage and Auto loan categories represent significantly higher dollar amounts. Consequently, preventing fraud in these key categories drives a disproportionately larger share of total savings for our economy.”

Vulnerable Groups Experiencing Affordability Challenges Drive Money Mule Activity

The report also identified a 90.9% surge in money mule activity - a trend that has been growing for several years. This can involve vulnerable individuals lured by 'easy money' scams or pushed by mounting financial hardship to legitimise illegal funds for criminals.

“We’ve seen a massive 90.9% surge in money mule cases year-on-year; however, there are additional factors influencing this spike. Lenders have been enhancing their fraud identification capabilities, and instances that were previously flagged as other types of fraud are now being identified as money muling.” said Tehani Legeay. 

The report shows a telling shift in the data - while reported identity takeovers fell by 16.6%, money muling spiked significantly.

“Many accounts once thought to be subject to identity takeovers, now appear to be instances of money muling - often with the account holder's involvement, whether they are complicit or coerced”.

“While these figures reflect growth in criminal activity, they also show that as an industry, we are getting better at spotting the true origins of fraud instances. Positively, this then allows for businesses to deploy targeted safeguards to help stop fraud before it happens.”

Fraud Instances Growing Significantly Faster Among Credit Products vs Non-Credit Products

For the first time in three years, fraud is growing faster among credit products (such as credit cards and mortgages) than non-credit products (such as telco and utility applications). While non-credit listings saw a slight dip (-1.1%), credit fraud jumped by +11.1%.

This shift aligns with a broader surge in credit demand. Recent Equifax Consumer Market Pulse data shows a +6% rise in unsecured credit demand, with mortgage enquiries seeing their strongest growth since 2021 (+12.3%).

Tehani Legeay concluded, “The fraud landscape is shifting. As more Australians seek credit to manage their financial needs, it creates a larger pool of opportunity for fraud.”

“At Equifax, we share our unique view of Australia's evolving digital landscape, equipping businesses and consumers with cutting-edge capabilities to help prevent fraud, and keep Australians safe.

Download the full Equifax Fraud Index Report here. 

-Ends-

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WHAT IS THE FRAUD INDEX REPORT? 
The Equifax Fraud Index Report 2025/2026 aggregates data from the Equifax Fraud and Identity Solutions, enriched with proprietary, public, and third-party sources. This data highlights shifting fraud trends by examining listings and volumes across types and credit/non-credit categories for the 2025 calendar year. As the landscape of financial crime in Australia becomes increasingly complex, this enables members to share intelligence of confirmed fraud events, helping to identify threats before they can penetrate individual institutions. While this data represents a specific set of Australian organisations, it serves as a useful indicator of the evolving tactics used by bad actors.

DISCLAIMER
Purpose of Equifax media releases:
The information in this release does not constitute legal, accounting or other professional financial advice. The information may change, and Equifax does not guarantee its currency or accuracy. To the extent permitted by law, Equifax specifically excludes all liability or responsibility for any loss or damage arising out of reliance on information in this release and the data in this report, including any consequential or indirect loss, loss of profit, loss of revenue or loss of business opportunity.