Banks Overestimate Their Fraud Readiness Despite Heavy AI Investments
Feedzai's latest research report reveals a significant gap between banks' perceived and actual fraud readiness. While financial institutions rate their own preparedness at an average of 80.2 out of 100, the measured score drops to 66.9 due to inefficiencies like disconnected data systems and excessive manual work. Despite growing budgets for AI-powered tools—expected by nearly all respondents—the report highlights that many fraud teams are still hindered by outdated processes. A key challenge is the lack of integrated data across departments, with only 41% having fully connected their fraud, anti-money laundering, compliance, and cybersecurity systems. This fragmentation forces analysts to manually gather information from multiple sources instead of focusing on threat analysis. Additionally, scams are now the leading source of fraud losses in most surveyed countries. The report also notes a shift toward collaboration: 87% of institutions would consider sharing secure fraud intelligence with competitors, signaling an industry-wide recognition that coordinated efforts are necessary to combat increasingly sophisticated threats.
Topics: AI in finance compliance data integration fraud readiness