Businesses in Germany are under consistent threats of cyberattack. Bitkom—Germany’s central digital association—estimates that the German economy suffered over €202 billion in damages in 2025 due to cybercrime—a 20% increase year-on-year. The best way to protect your business is to employ comprehensive fraud prevention strategies.

In this article, we explain the different types of online fraud, protections for businesses, and artificial intelligence (AI)-powered systems that can help. We also explain how businesses can prevent fraud and protect data, and we outline the regulatory requirements they must observe.

Key takeaways

• Online fraud represents a multifaceted threat for businesses in Germany, ranging from traditional methods—such as phishing—to artificial intelligence (AI)-powered attacks.
  
• The biggest risks are financial losses, data leaks, reputational damages, and legal consequences.
  
• The most effective way to protect your business is through a combination of trained staff, clear processes, secure authentication, and the right tech.
  
• Modern technologies can help identify attempted fraud early and automatically assess the risks.
  

What are the different types of online fraud?

Online fraud is committed using a variety of methods, with new tactics appearing constantly because of advances in digitisation and new technologies. Below, our overview provides a few of the most widespread forms of online fraud.

Classic online fraud

• Phishing
  In a phishing attack, fraudulent actors attempt to steal sensitive data, such as passwords or bank details. They frequently send fraudulent emails or messages posing as well-known companies or banks. Recipients are directed to manipulated websites or prompted to disclose confidential information.
  
• Identity theft
  Identity theft refers to fraudulent actors using personal information to commit fraud. This information is often obtained through data leaks, phishing attacks, or unsecured online services. For example, stolen information can be used to open bank accounts or sign contracts.
  
• Account takeover
  An account takeover is when a fraudulent actor gains access to existing customer accounts through stolen data, phishing attacks, or data leaks. Then, they modify profile data, trigger orders, or access sensitive information. This is a particularly high-risk form of fraud for businesses, as the fraudulent activities often look legitimate.
  
• Fraudulent transactions
  These are unauthorised payments or orders made by fraudulent actors via digital payment schemes. They are frequently made using stolen credit card details or compromised customer accounts.
  
• Invoice fraud
  Invoice fraud involves fraudulent actors sending businesses or private individuals fake invoices. These invoices often look genuine and refer to supposed services or supplies.
  
• Fake stores
  Fake online stores tend to offer products at particularly attractive prices. After shoppers place their orders, they either receive low-quality products or no products at all. These websites often look professional and use content copied from genuine store operators.
  
• Chief executive officer (CEO) fraud
  CEO fraud involves fraudulent actors pretending to be directors or business partners of a company. Typically, the aim is to get the target to make a large electronic transfer or give out confidential information. Fraudulent actors frequently use fake email addresses and specific information about organisational structures.
  

Online AI fraud

• AI-powered phishing
  Fraudulent actors can use modern AI systems to generate highly credible fake messages. Text messages contain fewer linguistic errors and can be customised for individual recipients. This increases the risk of employees clicking on malicious links or opening attachments.
  
• Deepfakes and voice cloning
  Deepfakes and voice cloning techniques use AI to create deceptively real imitations of people’s faces and voices. Fraudulent actors use these technologies to spread fake news or to make fake video and voice calls pretending to be a manager, business partner, or family member. For businesses, this technology increases the risk of manipulated money transfers and other fraud.
  
• Chatbot fraud
  Fraudulent actors use automated chatbots to establish trust or elicit information. These systems can be deployed in chats, social networks, or fake support services.
  
• AI-generated fake reviews
  AI can be used to generate large quantities of realistic reviews for products or services. These reviews can then be used to manipulate specific businesses or platforms, as they can prompt customers to make incorrect purchase or business decisions.
  

Online fraud risks for digital businesses in Germany

The types of online fraud we describe above pose significant risks to digital businesses in Germany. Due to advances in the digitisation of business processes, broad interconnectedness of businesses, and use of AI, opportunities for fraudulent actors continuously increase—with wide-ranging consequences.

Financial losses

Online fraud can lead directly to financial losses due to unauthorised payments, electronic transfers triggered by CEO fraud, or fake invoices. It also costs money to restore compromised systems, investigate incidents, and pay out damages to any affected customers.

Loss of sensitive data

Phishing attacks, identity theft, and captured customer accounts can lead to the loss of confidential company and customer information. Personal data, payment information, and trade secrets are particularly sensitive. If fraudulent actors access this information, it could result in data breaches and financial losses.

Reputational damage and loss of trust

When businesses experience online fraud, it can seriously impact trust among customers, business partners, and the general public. A company’s image can be permanently damaged by data leaks, fake stores, or manipulated communication channels. Digital companies are particularly reliant on trust and credibility.

Business interruptions and loss of productivity

Fraud and cyberattacks can cause serious disruptions to workflows. Employees have to resolve security incidents, audit systems, or block access. This frequently leads to delays in day-to-day operations and losses in productivity. This is especially problematic for companies with business models that rely heavily on digital processes.

Legal and regulatory complications

Businesses in Germany are subject to strict data protection and security requirements, in particular the General Data Protection Regulation (GDPR). Data breaches or inadequate security measures can trigger fines, legal consequences, and requirements to notify authorities and affected individuals.

Increasing complexity of the threat landscape

Advances in digital technologies make it more difficult to identify fraud. In particular, fraudulent actors can use AI-powered online fraud to conduct highly automated and personalised attacks. In many cases, traditional security measures aren’t enough. Instead, businesses must use them in tandem with ongoing training, technical safeguards, and modern security strategies.

How can businesses in Germany protect against online fraud?

As digital forms of fraud become increasingly prevalent, businesses focus more on prevention. Since the methods used to commit online fraud constantly change, a single security measure is not enough. Instead, businesses need a comprehensive security strategy that combines organisational, staffing, and technological initiatives.

Awareness and training for employees

Employees are one of the most important factors in fighting online fraud. At the same time, they are often the preferred target for phishing attacks, CEO fraud, or social engineering methods. Regular training can help employees spot suspicious emails, fake websites, or manipulated messages.

It’s also a good idea to familiarise employees with the typical warning signs of fraud, such as unusual requests for payment, pressure to act quickly, or unknown senders. Businesses should define clear internal processes so that employees can quickly flag and review suspicious activity.

Clear security policies and internal processes

Security policies reduce the risk of human error and establish clear responsibilities. Policies should govern factors such as password security, access rights, payment authorisation processes, and secure handling of sensitive data.

For financial transactions, businesses can employ the two-person rule (also known as the “four-eyes principle”) to identify fraudulent payment orders faster. Businesses should also clearly define internal communication channels to flag false identities.

Secure passwords and multifactor authentication (MFA)

Weak or reused passwords make it easier for fraudulent actors to access company systems. Therefore, businesses should ensure that passwords are strong, individual, and changed regularly.

MFA is another way to significantly increase security, as it requires secondary confirmation in addition to passwords. This approach can block many attacks on customer accounts, even if login details have been stolen in an earlier phishing attack or data leak.

Regular security updates and system maintenance

Outdated software and unpatched security vulnerabilities are among the most common ways fraudulent actors gain access. Therefore, businesses should ensure that operating systems, applications, and security software are updated regularly. Regular security audits and backups are equally important, as they enable businesses to react faster and minimise data losses.

Review of websites, invoices, and contact from partners

Fraud is often based on fake materials that look deceptively genuine. Therefore, businesses should carefully assess the authenticity of websites, invoices, and other payment requests, especially ones from unknown suppliers or ones that contain unusual payment information. Even emails or calls from alleged business partners should be treated with caution. If in doubt, it can be beneficial to obtain additional verification via a trusted communication channel.

Transparent communication with customers

Businesses should keep their customers actively informed of potential fraud risks. Providing information on secure payment methods, official communication channels, or common scams can strengthen customer trust and help prevent harm.

Businesses should also make it easy for customers to contact them. This way, customers can quickly report suspicious activities. Suspected incidents of online fraud should be flagged as early as possible to mitigate further damages.

Quick action on suspicious activity

Even with comprehensive prevention strategies, security incidents still happen. It is important to react to suspicious activity fast and according to a structured workflow. Businesses should have clear contingency plans in place to block compromised accounts, secure systems, and notify affected individuals. In serious cases, report online fraud and engage law enforcement.

Using technology and automation to protect against online fraud

Since modern forms of fraud are often automated and highly personalised, manual security checks are increasingly ineffective. Businesses need intelligent systems that can identify suspicious activities early and assess risks in real time.

Automated analysis and AI are key to protecting against online fraud. These tools can evaluate large volumes of payment, usage, and behaviour data at high speed. This means they can identify suspicious patterns, unusual transactions, or potential fraud faster than traditional review processes.

Modern technologies also help make security processes more efficient. Automated systems lighten employee workload around routine checks, reduce mistakes, and help businesses react faster to new fraud strategies. These days, intelligent security solutions are an important part of comprehensive risk management systems, especially with digital payment processes.

AI-powered fraud detection with Stripe Radar

Stripe Radar uses AI models to identify fraudulent activities early and to automatically review suspicious payments. The models are trained on data from the global Stripe network and are continuously updated according to the latest fraud patterns. This enables businesses to better identify and defend against new and fast-changing forms of fraud.

Radar also helps businesses approve legitimate payments with more confidence. AI models analyse factors—such as customer information, browsing behaviour, and disputed transaction data—to identify risky transactions as accurately as possible. Businesses also benefit from a reduced administrative workload, as the solution integrates directly into Stripe and can be set up without extensive programming.

Balancing online fraud prevention with data protection

Protecting against online fraud often requires processing personally identifiable information. Businesses analyse payment information, login details, or customer behaviour to identify suspicious activities early.

At the same time, they have to comply with the applicable data protection regulations. This creates a tension between implementing effective fraud prevention and protecting personal information. Businesses in Germany must implement security initiatives without breaching data subject rights.

GDPR requirements

The GDPR is the central legal framework governing the processing of personally identifiable information in Germany. According to Article 5 of the GDPR, data processing is subject to principles such as data minimisation, purposefulness of processing, and transparency. Therefore, businesses must only process data that is actually required for security or fraud prevention purposes.

This processing is often performed on the basis of a “legitimate interest,” under Article 6(1).f of the GDPR. At the same time, Article 32 of the GDPR requires businesses to take appropriate technical and organisational measures to protect personally identifiable information. Data breaches must be reported to the relevant supervisory authority within 72 hours, if there is a risk to individuals’ rights and freedoms. Businesses can also be required to notify individuals.

Trust and transparency

Businesses in Germany should openly communicate what data is being processed for security purposes and why this processing is necessary. Transparent privacy policies strengthen compliance and can increase customer trust. Businesses must make sure that automated analyses remain transparent and proportionate, especially when using AI to identify online fraud.

Regulatory aspects of digital security in Germany

Businesses that provide digital services or process personally identifiable information in Germany are subject to several statutory and regulatory requirements. These are intended to protect customers and ensure the stability of digital infrastructures.

While the GDPR is the most important of these legal frameworks, the following statutory regulations are also incredibly important for preventing online fraud:

• Law on the Federal Office for Information Security (BSI Act)
  Operators of high-risk facilities and important institutions are subject to binding risk management and reporting process requirements under the BSI Act. The BSI Act does not automatically apply to every company, so businesses should individually assess applicability.
  
• Network and Information Security 2 (NIS2) Directive
  The NIS2 Directive is the EU’s legal framework for cybersecurity. It widens the scope of applicability and requires many industries to observe higher security standards. The requirements under this new directive include comprehensive risk management initiatives, as well as the use of encryption and MFA. Its provisions have now been implemented into German law.
  
• German Criminal Code (StGB)
  Online fraud is a criminal offence in Germany and is covered by the StGB. One of the key provisions is Section 263 of the StGB that makes intentional deception with the aim of obtaining a pecuniary benefit a criminal offence. Many of the types of fraud described above—including phishing, CEO fraud, and fake stores—fulfil the criteria for this offence. Other acts that are punishable under the StGB include data espionage, handling stolen data, and computer sabotage.
  

FAQs

Below, we provide answers to the most important questions about online fraud in Germany.