Get 2026 fraud trends and statistics for financial institutions and fintechs, and benchmark your fraud strategy to elevate your defenses.
See how Alloy's identity and fraud prevention platform uses AI and 270+ data solutions to detect fraud and accelerate growth across the customer lifecycle.
Alloy CEO Tommy Nicholas breaks down the 3 trends keeping fraud and compliance teams up at night: AI-accelerated fraud, agentic users (KYA), and efficiency mandates.
7th largest credit union in the U.S. drives growth by keeping members safe
When authentication and fraud prevention operate in silos, account takeover attacks slip through. Here's what unified detection actually looks like.
Alloy Marketplace unites 270+ partner solutions and a new library of pre-built decisioning logic in one dashboard. Discover, test, and deploy from one place.
Why spend time on tedious manual reviews when AI can do it for you? Learn how agentic AI for KYC and compliance is helping financial orgs optimize efficiency.
7th largest credit union in the U.S. drives growth by keeping members safe
Alloy’s real-time risk assessments helps IncredibleBank create a holistic risk profile for each applicant.
Alloy helps Earnest optimize customer onboarding and underwriting to boost conversion rates
Know Your Agent (KYA) is how financial institutions verify AI agents acting for customers. Learn the core controls and how it differs from KYC.
Learn how actionable AI empowers financial institutions and fintechs to move from detecting fraud to agile prevention.
Banks and fintechs run into challenges that cause customer friction when it comes to AML, KYB, and KYC regulations.
We take a look at the evolution of fraud technology over the past two decades to help gain a better understanding of how banks and fintechs can fight fraud, maintain their customers’ trust, and continue to keep up with customer expectations for the onboarding experience—even as new threats emerge.
Another month, another set of excellent events from Alloy’s Employee Resource Groups (ERGs)! Trail Blazers (our ERG for women @ Alloy) hosted a panel with Women in Fintech and a volunteer event. HOLA (our Hispanic Organization & Leadership ERG) hosted a spicy salsa social. Meanwhile, the DEI Committee is hard at work behind the scenes planning company-wide training programs for the rest of the year.
In honor of the official/unofficial holiday in celebration of marijuana — lovingly referred to as "4/20" — we take a look at cannabis compliance requirements. Experts from BCB Community Bank and Shield Compliance share their tips for banks and fintechs thinking about opening a cannabis program.
Do faster payments mean faster fraud? We break down real-time payments and what they mean for your fraud controls.
Tax season brings with it new potential for fraud against Americans, and the numbers reveal that they are both aware of this threat and concerned about it. In this blog, we dig into the data around consumer fraud fears and discuss the repercussions for financial institutions.
In this eBook, we explore how using multiple data source providers in your identity verification process can not only help you mitigate fraud risks, but also bring on more good customers.
There’s been a lot of talk about how customers only want to operate online nowadays. In response, businesses are focused on building or improving their digital experience — and they should be. Gen Z and millennials tend to opt for online experiences before in-person ones, but that doesn’t mean you can forget about your in-person experience.
There's no way to sugarcoat it. Banks and fintech companies alike are getting crushed right now by small business account fraud. In this blog, we break down what types of small business banking fraud to look out for and how to prevent it.
What is a Suspicious Activity Report (SAR)? Who is required to file a SAR? When do you need to file one? How do you file one? — Alloy's Director of Compliance answers all these questions and more.
NEW YORK, March 21, 2023 -- Alloy, the leading Identity Decisioning Platform for banks and fintech companies, today announced its partnership with Kyckr, a corporate KYC company providing businesses with real-time data on prospective and existing customers and suppliers. The partnership gives Alloy’s 350+ clients — including Carta, Ramp, and Brex — a powerful tool in performing Know Your Business (KYB) for companies outside of the US. "With fraud higher than ever before, finding a speedy but safe way to onboard business customers remains a challenge for many financial institutions, particularly as they look to service clients in multiple global markets," said Edwina Johnson, Head of Global at Alloy. "Integrating Kyckr into Alloy’s platform will help our clients provide a seamless digital onboarding experience to customers without increasing the risk of fraud, no matter where in the world they are located." This partnership with Kyckr comes on the heels of Alloy’s UK launch in February, in which it strengthened its presence in EMEA with key senior hires and office space in London. Alloy first expanded to 40 new countries in 2022. Today, over 350 companies around the world use Alloy’s API-based platform to connect to more than 170 data sources, automate identity decisions during account origination, monitor them on an ongoing basis, and make credit underwriting decisions. Kyckr provides real-time access to aggregated corporate Know Your Customer (KYC) and Ultimate Beneficial Owner (UBO) data from over 300 company registries and primary regulated sources worldwide, helping organisations to avoid the significant regulatory and commercial costs associated with using poor-quality data. The partnership will strengthen Alloy’s ability to help financial institutions overcome the challenges of achieving seamless digital business onboarding on an international basis. “Tackling financial crime is the number one priority and it can only be achieved if companies can identify the criminals and meet the increasing scrutiny of regulators,” said Ian Henderson, CEO of Kyckr. “Our partnership with Alloy means its customers can automatically validate the status of companies at the respective corporate register in real-time, helping avoid the significant regulatory and commercial risks associated with using poor quality data.” To learn more about Alloy, visit https://www.alloy.com About Alloy Alloy helps over 350 banks and fintech companies make safe and seamless fraud, credit, and compliance decisions. Founded in 2015 and backed by leading investors from Lightspeed Venture Partners, Bessemer Venture Partners, and Canapi Ventures, Alloy’s platform connects companies to more than 170 data sources of KYC/KYB, AML, credit, and compliance data through a single API to help create a future without fraud. Learn more at https://www.alloy.com. About Kyckr Kyckr is a B2B information services company that aggregates, organises and structures the world’s primary source company data to help businesses reduce the risks associated with counterparty relationships. Unlike traditional data companies which source data from multiple, secondary sources, Kyckr provides accurate data with trusted, legally-authoritative provenance. This helps organisations to avoid the significant regulatory and commercial costs associated with using poor-quality data. Through the combination of accurate data with innovative technology, Kyckr’s solutions help businesses to succeed in the fight against fraud, money laundering and financial crime. Kyckr is wholly owned by serial entrepreneur and founder of WiseTech Richard White through his personal investment vehicle RealWise KYK AV Pty Ltd. Learn more at https://www.kyckr.com/.
Subscribe to our blog for the latest posts, resources, and events for all things banking and fintech.
Our employee resource groups (ERGs) hosted some amazing events over the past month, and our employees celebrated Black History Month and Women’s History Month.
KYC, KYB, and AML laws require financial institutions to verify a company’s (and its beneficial owners’) identity before offering the business financial services or products. We break down the nuances of onboarding sole props vs. LLCs.
Alloy CTO, Charles Hearn, uses his own knowledge-based authentication (KBA) questions to prove why they are an not effective approach to identity verification.
CARMEL, Ind., Feb. 28, 2023 -- Baker Hill, a leading financial technology provider in delivering solutions for loan origination, risk management and analytics, has partnered with Alloy, an identity decisioning platform, to help financial institutions verify more prospective borrowers digitally and ensure compliance throughout the loan origination process. Through the partnership, financial institutions using Baker Hill NextGen® can now leverage Alloy Onboarding, which features a single-API identity decisioning platform, connecting multiple data sources into customized workflows during account origination. As a result, banks and credit unions can verify prospective borrowers quickly and accurately with fewer manual reviews and less fraud while complying with KYC and AML requirements. With integrations to more than 170 data sources, Alloy also gives Baker Hill's financial institution clients more flexibility to use the fraud prevention and identity solutions they prefer in their loan origination workflows. Additionally, Alloy makes it easy to incorporate new data sources or adjust workflows, eliminating the need for community financial institutions to rely on coding or costly programming to make changes. "There's been nearly a 7 percent increase in lending fraud among small and midsize businesses since 2020 and according to a 2021 report by Aite-Novarica Group, only 31 percent of lending institutions had negligible rates of fraud incidence," said Mike Horrocks, Vice President of Product Management at Baker Hill. "At the same time, many community banks and credit unions are focused on lending outside of their traditional markets to expand their reach, which can expose these institutions to added risk. By partnering with Alloy, Baker Hill helps minimize risk and time spent on manual reviews so financial institutions can generate loan growth with confidence, even in new markets." "For community financial institutions to remain competitive among borrowers, offering a seamless digital lending experience from day one is crucial," said Brian Bender, VP of Strategic Alliances at Alloy. "Together, Alloy and Baker Hill make it easier for banks and credit unions of all sizes to provide a world-class experience for borrowers while mitigating the risk of fraud and ensuring compliance. We are proud to work with an industry-leading fintech like Baker Hill and look forward to empowering their financial institution clients to accept more loan applicants without additional fraud risks." About AlloyAlloy helps over 360 banks and fintech companies make safe and seamless fraud, credit, and compliance decisions. Founded in 2015 and backed by leading investors from Lightspeed Venture Partners, Bessemer Venture Partners, and Canapi Ventures, Alloy's platform connects companies to more than 170 data sources of KYC/KYB, AML, credit, and compliance data through a single API to help create a future without fraud. Learn more at https://www.alloy.com. About Baker HillBaker Hill is in the business of evolving loan origination by combining expertise in technology with expertise in banking. Built on decades of walking alongside banks and credit unions as they provide vital resources to their communities, Baker Hill NextGen® is a configurable, single platform SaaS solution for commercial, small business, consumer loan origination, and risk management that grows along with you as your business needs change. Baker Hill is lending evolved. For more information, visit bakerhill.com.
The most common type of fraud is one you might not have heard of yet. Here’s how to identify and combat ambient fraud.
Alloy's co-founder and CEO, Tommy Nicholas, reflects on the foundations that help inform everything we do here at Alloy.
Our DEI committee and employee resource groups (ERGs) are continuing to put together awesome events and volunteer opportunities for Alloy employees. Take a look at what went on over the past 30 days, including Black History Month and Lunar New Year celebrations.
Alloy CEO Tommy Nicholas reacts to new State of Fraud Benchmark Report.
LONDON, Feb. 9, 2023 -- US fintech Alloy has launched in the UK, strengthening its presence in EMEA with key senior hires and office space in London. Alloy's Identity Decisioning Platform helps banks and fintech companies to make smarter and faster decisions about the risk profile of each customer, and keep them safe from financial crime. The platform connects to more than 170 data sources, enabling financial institutions to automate customer approval and account opening, and monitor transactions in real time. Over 350 companies around the world trust Alloy to help them simplify processes and respond rapidly to new risks. Fraud is a more serious threat than ever before: 91% of financial institutions said that fraud has increased year-on-year, and 71% increased their spending on fraud prevention, according to recent Alloy data*. In the UK alone, bank fraud cost consumers almost £610M in the first half of 2022**. With Alloy, clients see an average 48% reduction in fraud. UK fintechs now have access to the company's full product range, enabling them to stay ahead of regulatory requirements and scale their operations with ease. Alloy's former COO Edwina Johnson has relocated to London to head up global expansion, while James Baston-Pitt, former Vice President at Onfido, will spearhead commercial initiatives as the EMEA Director of Growth. The UK team is currently hiring for roles across sales and partnerships, and will continue to build out its go-to-market and client services functions throughout the year. Since Alloy was founded in 2015, the firm has helped more than 350 of North America's most innovative banks and fintech startups prevent fraud and financial crime, including Carta, Ramp and Brex. Alloy has raised over $210M to date, reaching a $1.55BN valuation, and last year announced its expansion into 40 new countries. The company has doubled down on its commitment to EMEA by establishing a physical presence in London, its first local site outside the US. Edwina Johnson, Head of Global at Alloy said: "For financial institutions to remain competitive in today's market, cross-border functionality is no longer a major advantage - it's a must. Fintech startups are now building with a global mindset from day one, and looking for technology partners who can scale with them, adapting to their changing business needs, appetite for risk, and compliance requirements. "The UK is one of the world's most powerful fintech hubs, and we can't wait to help innovative local firms unlock their potential abroad. For too long, international expansion has involved trade-offs with risk management, but that doesn't have to be the case. Alloy provides dynamic support for companies operating across multiple regulatory environments, so they can focus on growing their business without worrying about the threat of fraud." To learn more, visit Alloy.com. *Source: Alloy's Annual State of Fraud Benchmark Report**Source: Reuters - Bank fraud falls from COVID high but threatens UK security About AlloyAlloy helps over 350 banks and fintech companies make safe and seamless fraud, credit, and compliance decisions. Founded in 2015 and backed by leading investors from Lightspeed Venture Partners, Bessemer Venture Partners, and Canapi Ventures, Alloy's platform connects companies to more than 170 data sources of KYC/KYB, AML, credit, and compliance data through a single API to help create a future without fraud. Learn more at https://www.alloy.com ContactLydia Woodward, consultant at LMW PR - [email protected] Sibilia at Alloy - [email protected]
NEW YORK, New York – February 7, 2023 Enigma, a data science company that provides comprehensive intelligence about the financial health and identity of every U.S. business, announced today they have partnered with identity decisioning platform Alloy, the leading onboarding and transaction monitoring solution for banks and fintech companies. Working together, Enigma and Alloy will provide financial institutions a rich, unified view of small and medium businesses, all within the Alloy platform. “Partnering with Alloy reflects our commitment to providing access to timely, accurate data about small and medium businesses,” said Charles Zhu, VP of Product at Enigma. “Alloy’s customers will now have access to monthly revenues and other financial health data to fuel credit decisions, right in the platform.” Enigma’s proprietary machine learning algorithms combine hundreds of public and private data sources to generate its data about the financial health of more than 30 million small and medium businesses. Now, Enigma’s data joins Alloy’s curated library of over 170 rich data sources, offered via Alloy’s API-based platform, empowering customers to automate identity decisions during account origination, monitor them on an ongoing basis and centralize credit decision workflows in one place. For financial institutions that leverage Alloy to grow and scale their operations, the partnership unlocks an all-in-one option for integrating Enigma’s small business intelligence for decision-making. Offering this new kind of data about small businesses, an underserved segment of the economy, delivers on Alloy’s mission of creating a more dynamic and accessible financial industry. “We’re creating a future where financial services are accessible for all, including the millions of small businesses that may fall outside the historic profile for what ‘creditworthy’ looks like,” said Brian Bender, VP of Strategic Alliances at Alloy. “Our partnership with Enigma gives financial institutions access to the timely data they need to say ‘yes’ to more small businesses.” About Enigma Enigma provides comprehensive intelligence about the identity and financial health of every small and medium business across the United States. By engineering better data from hundreds of public and third-party sources, Enigma provides a clear picture of a business and its operations, so that companies of every size can access the financial services they need to grow and thrive. Financial organizations from the world’s largest banks to tomorrow’s unicorns use Enigma's data to better serve their small business customers. To learn more visit https://enigma.com. About Alloy Alloy helps over 360 banks and fintech companies make safe and seamless fraud, credit, and compliance decisions. Founded in 2015 and backed by leading investors from Lightspeed Venture Partners, Bessemer Venture Partners, and Canapi Ventures, Alloy’s platform connects companies to more than 170 data sources of KYC/KYB, AML, credit, and compliance data through a single API to help create a future without fraud.
Alloy’s LGBTQ+ employee resource group (ERG), Out & About, kicked off the year with a bang ?— hosting our first ERG event of the year and biggest ERG event to date, a drag competition for charity to benefit Lambda Legal.
Breaking down sanctions watchlists screening, know-your-counterparties, and more.
NEW YORK, Jan. 9, 2023 -- Leading Identity Decisioning Platform, Alloy, today released a report finding that 27% of respondents lost over $1M to fraud in the last 12 months. 70% of respondents reported losing over $500K to fraud, with fintech companies and regional banks being the most likely to report higher losses. 37% of fintech companies and 31% of regional banks estimated losing between $1-10M to fraud. The Annual State of Fraud Benchmark Report surveyed over 250 decision-makers working at financial institutions including community banks, fintech, crypto, national banks, regional banks, and online lending institutions). The survey ran from September 8-20, 2022, and respondents came from roles across fraud, compliance, risk technology procurement, digital banking strategy, and account opening. Fraud continues to plague financial institutions of all sizes and across all segments. One-third of respondents said they experienced between 1,000 and 10,000 fraud attacks in the last twelve months. 91% of respondents said fraud has increased year-over-year since 2021. "Fraud is the highest it's ever been," said Tommy Nicholas, CEO and co-founder of Alloy. "Rapid digitization and an influx of cash from pandemic relief scams have created the perfect conditions for fraudsters to thrive. Regardless of sector or size, financial institutions must do more to keep their customers' assets safe from fraud, but without compromising on the customer experience." The report also found that fraud prevention is a costly and time-consuming enterprise for financial institutions: two-thirds of respondents reported that over half of their workforce is working on fraud-related activities. 71% of respondents have increased their spending on fraud prevention YoY. Respondents were also concerned about additional 'hidden' costs of fraud such as legal repercussions, regulatory fines, reputational damage, and loss of clients. Respondents reported that the main barrier to defending against fraud is automation. 46% of respondents cited a greater need for automation as the most common barrier to being prepared to combat fraud, followed by an absence of dedicated teams for fraud (41%) and the inability to adapt to new threats (39%). For more insights, read the full report here. About Alloy Alloy helps over 360 banks and fintech companies make safe and seamless fraud, credit, and compliance decisions. Founded in 2015 and backed by leading investors from Lightspeed Venture Partners, Bessemer Venture Partners, and Canapi Ventures, Alloy's platform connects companies to more than 170 data sources of KYC/KYB, AML, credit, and compliance data through a single API to help create a future without fraud. Learn more at https://www.alloy.com
