Stay one step ahead with digital banking solutions that combine artificial intelligence (AI) and behavioral biometrics to protect every transaction — and your institution’s reputation.

Fraud threats in banking have evolved beyond isolated incidents. Today, they represent a persistent, highly sophisticated risk — one that financial institutions must anticipate, not just react to. And while some institutions have made major strides in modernizing their fraud defenses, others are still catching up. This growing divide in digital maturity is shaping how effectively organizations can prevent and respond to fraud.

As online and mobile banking activity accelerates and fraud tactics become more sophisticated, institutions have shrinking windows to detect and block suspicious behavior. In this environment, successful fraud prevention demands more than vigilance — it requires proactive, intelligent digital banking solutions that can predict and neutralize threats before they cause harm.

Targeted, Sophisticated, and Always Evolving Fraud Tactics

Fraudsters are refining their methods and leveraging new technologies to bypass outdated defenses — and in many cases, they’re doing it faster than financial institutions can adapt. In 2024:

• 63% of organizations experienced Business Email Compromise (BEC), up sharply from 39% the previous year​.
• Vendor impersonation schemes continued to rise, exploiting invoice workflows and  digital communication channels​.
• Artificial Intelligence (AI)-generated phishing and deepfake fraud attempts are gaining real-world traction, introducing entirely new layers of deception​.
• Account takeover attacks are becoming more targeted and harder to detect.

These threats increasingly exploit not just technical vulnerabilities, but also operational gaps — including inconsistent fraud response protocols and siloed teams. According to Alkami’s latest market research, financial institutions with higher digital maturity consistently demonstrate stronger fraud prevention capabilities, including AI anomaly detection and comprehensive security hygiene. In contrast, less mature institutions often lack basic protections like real-time alerts or employee training, delaying threat detection and increasing exposure. 

Modern Fraud Requires Modern Defenses

Traditional, rule-based fraud monitoring alone cannot keep pace with today’s dynamic threat environment. Legacy systems often rely on batch processing or manual reviews, leading to delays that allow sophisticated fraud schemes to go undetected until after the damage is done.

Alkami’s Digital Banking Platform, integrated with leaders like BioCatch, Appgate, and DefenseStorm, provides a layered, proactive approach to modern fraud prevention. This includes:

• AI-Powered Account Anomaly Detection: Continually monitors transaction behavior, assigns dynamic fraud scores, and alerts fraud analysts for investigation — giving financial institutions critical time to prevent losses.
• Behavioral Biometrics: Monitors user behaviors like keystroke timing and swipe patterns to provide continuous, silent authentication. In an era where 62% of fraud incidents were a result of a fraudulent email​, behavioral biometrics helps detect account takeovers early while also easing legitimate login experiences.
• Real-Time Threat Detection and Response: Uses AI and machine learning to automatically identify and contain cyber threats before they escalate​.

Together, these capabilities allow financial institutions to:

• Catch both known and novel fraud tactics
• Reduce false positives through adaptive learning
• Respond rapidly to emerging threats
• Enable tiered, automated fraud mitigation workflows

With Alkami’s comprehensive digital banking solutions, banks and credit unions can detect, adapt to, and neutralize fraud threats — before account holder trust, revenue, or reputation are impacted.

Digital Maturity vs. Fraud Prevention Maturity

While technology adoption is critical, being data-driven alone does not guarantee strong fraud defenses.

Recent research shows a wide gap between digital maturity and fraud prevention effectiveness​​:

Source: Alkami’s Retail Digital Sales & Service Maturity Model, 2025

Building true fraud resilience requires both:

• Advanced technologies like AI and behavioral biometrics
• Disciplined operational practices including patching, employee training, account holder education and incident response drills​

Institutions that fail to modernize both areas remain highly vulnerable — particularly as fraudsters increasingly target gaps in onboarding processes, money movement systems, and employee and account holder behavior.

Comprehensive Defense Through Alkami and Its Partner Ecosystem

Alkami strengthens fraud defenses through strategic integrations with trusted partners:

• BioCatch: Uses behavioral biometrics, cognitive analysis, and behavioral insights to distinguish genuine users from cybercriminals, detect stolen credentials, reduce false positives, and improve user experience across digital channels.
• Appgate: Real-time transaction monitoring that uses behavioral and transactional analytics to detect both known and emerging fraud, reduce false positives, and streamline alert management.

This multi-layered defense approach helps financial institutions detect and contain fraud threats earlier — protecting accounts, payments, and sensitive data.

Future-Proof Your Institution Against Fraud

Fraud recovery remains difficult:

• Only 22% of institutions fully recovered 75% or more of stolen funds in 2024​
• 20% were unable to recover any losses at all​

As payment ecosystems evolve, fraud tactics will continue to advance. Alkami’s Digital Banking Solutions — powered by AI, behavioral biometrics, and advanced cybersecurity — gives banks and credit unions the tools needed to:

• Detect and prevent fraud proactively
• Protect account holder and employee accounts
• Strengthen revenue growth through enhanced digital trust