Financial crime risks are set to increase significantly in 2025, with a staggering 96 per cent of Indian executives anticipating a rise compared to the global average of 71 per cent, according to Kroll’s 2025 Financial Crime Report.
The report, which surveyed over 600 business leaders globally across financial services and other regulated industries, highlights cybersecurity and AI as primary concerns. In India, 76 per cent of respondents cite cybersecurity threats as the main driver of financial crime risk, while 72 per cent point to increased use of AI by criminals.
Despite these growing threats, only 36 per cent of Indian executives believe their organization’s compliance program is “very effective” at combating financial crime. Key shortcomings include insufficient technology investment and weak governance infrastructure.
The APAC region shows the highest concern overall, with 82 per cent of respondents expecting increased financial crime in 2025. Globally, 68 per cent of financial professionals identified cybersecurity as the biggest driver of exposure.
Cryptocurrency remains a significant concern, with 56 per cent of Indian respondents considering it a moderate to significant financial crime threat. Only 28 per cent report having compliance programs that address cryptocurrency risks, with another 28 per cent planning to implement such measures.
Geopolitical risks are also raising alarm bells. Only about one-third of global respondents feel “very prepared” to address geopolitical issues over the next 12 months, while just 38 per cent are “very confident” in their ability to detect emerging geopolitical threats.
“From cybersecurity threats to geopolitical uncertainty, firms in 2025 are facing an incredibly complex risk environment,” said Tarun Bhatia, Regional Managing Director and Co-Head APAC Investigations Diligence and Compliance at Kroll.
The report indicates that organizations are responding by increasing compliance function responsibilities, with 79 per cent of global respondents expecting their compliance teams to take on more duties in the coming year.
