Alkami study shows a 25% rise in fraud losses reported in 2024

The study underlines the importance of banks and credit unions in increasing prevention strategies. 

The survey initiated by Alkami examines the perceptions of financial institutions and customers regarding fraud prevention and data protection within the digital banking experience. 

The research reveals that the total fraud losses reported by consumers and companies in 2024 reached USD 12.5 billion, 25% more than the previous year. According to the survey, 77% of the involved financial institutions anticipate a record number of fraud cases in 2025. Additionally, 33% believe they need to invest more in protection measures to prevent a critical number of fraud causes. 

Notably, 67% of survey banks and credit unions acknowledge the necessity for further fraud prevention and are willing to improve their cybersecurity measures. 

Another research study completed by Alkami underlines the importance of data security for consumers. According to its findings, 93% of US digital banking users consider protecting their data from financial fraudsters and hackers an important aspect of their work. Additionally, 91% of respondents indicate that protecting their data from unauthorised third parties is also important or particularly important for them. 

Addressing the increased fraud challenges

Although customers claim to be aware of traditional fraud methods, they tend to underestimate the seriousness of the innovative approaches. Financial fraudsters' methods are becoming more sophisticated, posing a real and costly threat. The latest techniques include synthetic identities, coordinated account takeovers, and real-time manipulation. 

Traditional prevention methods frequently struggle to keep pace with these evolving threats. To further strengthen fraud prevention, financial institutions are focusing on initiative-taking methods. These include implementing real-time fraud detection with a multi-layered approach and expanding educational initiatives to inform account holders about emerging schemes and techniques. Their efforts aim to help customers to combat fraud attempts and improve security.