Executives expect rising financial crime risks in 2025
NEW YORK, UNITED STATES — Kroll’s report finds 71% of executives expect rising financial crime risks in 2025, driven by cybersecurity threats, AI skepticism, and geopolitical instability.
Sixty-eight percent (68%) cite cyber risks as a top concern; 49% plan AI investments despite declining confidence. Regulatory complexity and sanctions gaps persist, with only 33% “very prepared” for geopolitical threats.
Results demonstrate a dangerous situation where businesses face numerous challenges because of mounting cyber threats and global upheaval at a time of regulatory shifts alongside artificial intelligence serving as both a helpful tool and a dangerous threat.
Cybersecurity: the frontline of financial crime
Professionals view cybersecurity threats as the number one financial crime risk factor because they worry about them most at 68%. Most companies intend to use AI for fraud prevention efforts, but their trust in AI’s ability to help compliance frameworks has dropped significantly since last year to only 20% from the previous 37%.
During this time, 27% of firms have added artificial intelligence and machine learning to their compliance systems. This is because these technologies are used to track suspicious activities (63% of firms) and analyze networks (54% of firms). Reliability stands in conflict with innovation because organizations face challenges in finding the right balance between the two.
Regulatory complexity and geopolitical uncertainty
Evolving regulations are straining compliance efforts. 55% of respondents expect increased enforcement actions in 2025, while 59% anticipate changes to corporate transparency rules. Sanctions compliance continues to be a significant issue, with 49% citing the challenge of keeping up with evolving regulations, an increase from 34% in 2023.
Geopolitical risks pose significant challenges, as only 33% of professionals perceive themselves as “very prepared” to tackle threats such as sanctions or supply chain disruptions. David Lewis, Kroll’s Managing Director of Investigations, notes: “From cybersecurity threats to geopolitical uncertainty, firms in 2025 are facing an incredibly complex risk environment. The changing nature of risk analysis means that businesses are expected to stay abreast of a variety of risk factors, but this becomes increasingly difficult the faster that illicit actors develop new tricks and tools.
What is measured can be managed, as the saying goes, and our 2025 Financial Crime Report is intended to give compliance and security teams a better measurement of the risks they face today. Firms that can best direct efforts to meet this changing landscape will be the ones that succeed, even as the outlook for financial crime grows more concerning by the year.
“Kroll’s report paints a stark picture: financial crime risks are intensifying, and firms must adapt swiftly. While AI and partnerships with experts like Kroll offer pathways to resilience, the road ahead demands vigilance. As Brent Tomlinson, Kroll’s Co-President of Risk Advisory, warns:
“Professionals in all sectors will need to be on the top of their game, partnering with experts on risk analysis, decision-making support, and mitigation plans, if they are to protect and grow their businesses.”
