Nasdaq Verafin | Global financial crime reached an estimated $4.4 trillion in 2025, according to the 2026 Global Financial Crime Report. According to Nasdaq Verafin’s report, illicit financial activity has jumped by $1.3 trillion since 2023, significantly outpacing global GDP growth.

The report highlights how organized criminal networks are using artificial intelligence, faster payment systems, and cross-border operations more than ever to scale scams and move illegal funds more efficiently.

The report estimates:

$1.1 trillion linked to drug trafficking
$528.5 billion tied to human trafficking
$16.2 billion associated with terrorist financing
$579.4 billion in global fraud losses in 2025

Fraud scams alone grew at an annualized rate of 19.3% between 2023 and 2025.

AI Is Accelerating Fraud

According to the report, 90% of surveyed anti-financial crime professionals observed a rise in AI-driven attacks over the past two years. Criminals are using AI to:

Create deepfake scams
Automate phishing and impersonation campaigns
Scale social engineering operations
Support “scams-as-a-service” infrastructure

Investment scams, business email compromise (BEC), and romance scams comprise some of the fastest-growing threats.

Fraud and Human Trafficking Are More Connected

The report also highlights a growing convergence between fraud operations and human trafficking. The Organization for Security and Co-operation in Europe (OSCE) identified growth in large scam compounds that use trafficked individuals to conduct fraud schemes at scale. Compounds often recruit victims through fake job offers, then coerce them into participating in criminal operations.

Money Mule Networks Remain Critical

A money mule is a person who transfers or moves illegally obtained money on behalf of criminals. Some do so in exchange for payment, while others unknowingly participate in fraud.

Money mule networks moved an estimated $284 billion in illicit funds globally in 2025. These networks help criminals:

Obscure stolen funds
Exploit jurisdictional gaps
Complicate investigations
Move money quickly across borders

The report notes a jump in online recruitment scams targeting students, migrants, and gig workers.

Collective Action Is Essential to Fight Fraud

Several facets of the report emphasize that financial institutions, governments, technology companies, and law enforcement agencies must collaborate to combat a rise in sophisticated threats. Siloed efforts are not enough.

The report highlights initiatives that focus on real-time intelligence sharing and coordinated fraud prevention efforts across sectors.

These recommendations align with those in Operation Shamrock Founder Erin West’s testimony to the House Select Committee on China in a hearing on May 19. Learn more and watch the hearing.‍ ‍

Looking Ahead

Nasdaq Verafin’s report concludes that AI presents both the biggest challenge and one of the most important opportunities in the fight against financial crime. Financial institutions are investing more in AI-driven detection tools, collaborative intelligence sharing, and faster prevention strategies to keep pace with evolving criminal tactics.

Learn more or download the full report: 2026 Global Financial Crime Report

Post by Will Martin, content consultant.