Security

Report finds fraud rose for financial institutions, fintechs

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December 17, 2025

Fraud rates continue to increase for financial institutions and fintechs, according to Alloy's State of Fraud Report. The report stated 67% of fraud professionals agree fraud is rising, due to innovative tools such as generative AI, according to a press release.

Other findings include:

• 22% of organizations report losing more than $5 million from fraud.
• 63% said fraud losses were under reported.
• 82% have increased investment in AI-driven fraud prevention tech.
• 89% pointed to synthetic identity creation as the most concerning fraud type.

Experts believe 36% of fraud comes from organizations, 29% from customers stealing from the bank and 29% from scam victims.

"One of the biggest changes to the fraud landscape has been the adoption of AI to combat fraud," Tommy Nicholas, co-founder and CEO of Alloy, said in the release. "Bad actors are more sophisticated than ever, making use of tools like AI table stakes in fraud prevention. In 2026, the distinction won't be who uses AI; it will be how — specifically how to anticipate attacks and identify risk the moment it enters the system."