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.
Third-party fraud, like identity theft and account takeovers, are bypassing fraud detection daily. Prevent these costly fraud attacks with the right know-how.
Passkeys are becoming more popular, but it is important to understand both the benefits and risks of passkey-supported websites and applications.
Prioritizing identity is the foundation of a strong fraud prevention strategy. But so many financial institutions still struggle to classify fraud. Alloy knows how they can improve, quickly.
Alloy's Chief Product Officer reflects on the recent uptick in consent orders and shares how sponsor banks can respond.
This guide will take you through the things you should consider to create a digital strategy you can bank on.
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.
Alloy helps Earnest optimize customer onboarding and underwriting to boost conversion rates
Mountain America Credit Union reduces fraud by 29%Alloy Onboarding helped Mountain America Credit Union create a self-service application process designed to identify and reduce fraudulent applications
Alloy's GM of Partner Solutions explains how Alloy uses data orchestration to magnify the power of our data partner network.
Take an in-depth look into account takeovers, learn why this fraud type leads to higher cases of identity theft, and discover how to detect and prevent account takeover.
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Fintech Takes' Alex Johnson shares why he thinks identity verification needs to be at the forefront of your fraud prevention strategy.
NEW YORK, February 29, 2024 -- Alloy, the identity risk management company behind nearly 600 leading banks and fintech companies, today announced Alloy for Embedded Finance, a new product custom-designed for sponsor banks, BaaS providers, and their fintech partners to collaboratively manage identity risk and stay ahead of regulatory requirements.Oftentimes, sponsor banks have not had sufficient oversight or control over whether their fintech partners have adhered to the banks’ government-mandated compliance requirements. Alternatively, in models where sponsor banks have taken on all compliance responsibilities, they have often forced their fintech partners into a one-size-fits-all approach to compliance that doesn’t suit fintechs’ evolving risk needs and often adds unnecessary friction to their user experiences.Alloy for Embedded Finance solves these challenges. The new product leverages the strength of Alloy’s existing platform while introducing a new parent/child account configuration. Sponsor banks (or ‘parent accounts’) have the ability to designate different levels of autonomy and guardrails for each of their fintech partners (or ‘child accounts’), depending on how mature the fintech is, how much of the process the fintech wishes to own, and the risk appetites of both parties. With this construct, sponsor banks can seamlessly build compliance policies, then issue and enforce them to each of their fintech partners all at once. More mature or 'autonomous' fintechs can customize their controls on top of these baseline policies, giving them the flexibility to tailor risk measures that don't add unnecessary friction for end users. Regardless of the autonomy level a fintech partner has, their sponsor bank retains total oversight of their policies to ensure they are fully compliant.“Sponsor banks can't operate without controlling the CIP/KYC and AML/BSA policies of the fintechs in their program—recent enforcement actions make this clear,” said Tommy Nicholas, CEO and Co-founder at Alloy. “At the same time, risk programs that are ‘one size fits all’ result in terrible user experiences for fintechs that pride themselves on providing a frictionless interface. Alloy for Embedded Finance solves both sides of this problem.”Alloy for Embedded Finance arrives during a period of massive potential for the embedded finance industry: Ernst & Young predicts that the global embedded finance market across the entire value chain will grow to $606B by 2025. However, the industry has been plagued by compliance challenges, with regulators increasing pressure on sponsor banks to ensure their third-party partners meet compliance requirements. According to data from advisory firm Klaros Group, sponsor banks drew one-third of all formal enforcement orders by federal banking agencies in the fourth quarter of 2023. With regulatory attention unlikely to slow down, it is more critical than ever for sponsor banks and their fintech partners to work collaboratively to meet compliance requirements so they can truly capture the full potential of the embedded finance market. Alloy already works with many of the leading sponsor banks, BaaS providers, and fintechs in this space, including Grasshopper, Liberis, Treasury Prime, and Marqeta.Learn more about Alloy for Embedded Finance here.About AlloyAlloy solves the identity risk problem for companies that offer financial products. Today, nearly 600 banks and fintechs turn to Alloy’s end-to-end identity risk management platform to take control of fraud, credit, and compliance risks, and grow with confidence. Founded in 2015, Alloy is powering the delivery of great financial products to more customers around the world. Learn more at alloy.com.
Embedded finance solutions can help banks maintain compliance control while giving fintechs the flexibility to customize their risk management approach.
Sara Seguin, Alloy’s Principal Advisor of Fraud & Identity Risk, shares top takeaways from Alloy’s annual fraud report and reacts to some of the surprising data
Alexis (Lex) Alexander, Chief Legal & Compliance Officer at Liberis, sits down to chat about managing compliance risk at Liberis.
London, UK, February 6, 2024 -- Liberis, the leading global embedded finance platform, today announced a partnership with Alloy, the identity risk management company behind over 500 of the world’s leading banks and fintechs. The partnership will enable Liberis to leverage Alloy’s platform to fast-track its global growth, and simplify the merchant experience by integrating automated compliance verifications into the funding application process. Additionally, it will facilitate the creation of custom, white-labelled onboarding experiences for partners. “We’re excited to partner with Alloy to help us achieve our global growth goals,” said Alexis Alexander, Chief Legal & Compliance Officer of Liberis. “Alloy’s platform will allow us to enter new markets quickly, optimise our merchants’ fully digitalised application for funding and scale to meet our partners’ demand, while also maintaining our high standards for compliance.” Alloy’s platform provides Liberis with access and integrations to a global network of over 190 data sources that help streamline KYC, KYB, and AML processes while also preventing financial crime. This will enable Liberis to onboard merchants in new markets quickly and efficiently. “We are thrilled to be partnering with Liberis to add them to our growing list of global clients,” said Tommy Nicholas, CEO at Alloy. “Alloy is designed to help businesses take control of fraud, credit, and compliance risk, while growing with the clearest picture of their customers. We’re confident that our partnership will help Liberis achieve its goals and provide its merchants with a seamless onboarding experience.” The collaboration between Liberis and Alloy will streamline the funding application process for merchants, minimising the paperwork involved. Most merchants will experience a smooth and seamless application process, with compliance verifications happening behind the scenes. In cases where further documentation is necessary, Liberis will offer a bespoke, white-label experience that aligns with the needs and standards of both merchants and their partners. “We hold ourselves to high standards on compliance, and we know it’s very important to our partners,” said Alexander. “But adding compliance checks can mean friction in the application journey. Using Alloy, we will be able to reduce this for most customers, whilst never compromising on a fully compliant process”. Liberis is committed to growing in a scalable way. By partnering with Alloy, Liberis can reduce the engineering resources required to support its international expansion and meet its compliance requirements. This allows Liberis to focus resources on its core mission of providing merchants with the funding they need to grow and thrive through their partners. About Liberis Liberis builds flexible embedded finance solutions that empower businesses and provide positive impact. Founded in 2007, Liberis is a leading global embedded finance platform with a mission to provide small businesses with accessible and responsible finance, based on the belief that funding should always be a positive force for small businesses. Liberis provides partners with the technology platform and financial solutions to offer hyper-personalised and accessible funding, empowering their small business customers to grow their revenues. With over 20 global strategic partners and direct reach to more than 1 million small businesses, Liberis has provided over $1bn of funding in over 60,000 transactions, enabling over 100,000 jobs to be created and saved. About Alloy Alloy solves the identity risk problem for companies that offer financial products. Over 500 banks and fintechs turn to Alloy’s end-to-end identity risk management platform to take control of fraud, credit, and compliance risks, and grow with confidence. Founded in 2015, Alloy is powering the delivery of great financial products to more customers around the world. Learn more at alloy.com.
Alloy included both US and UK respondents in its 2024 State of Fraud Benchmark Report. Here is a breakdown of similarities and differences between the countries.
Check out our webinar on trends in embedded finance and BaaS, and learn strategies to overcome challenges in setting up and scaling programs.
NEW YORK, January 25, 2024 -- Alloy, the identity risk management company behind over 500 leading banks and fintech companies, today released its 2024 State of Fraud Benchmark Report, finding that after years of steadily increasing fraud rates, the number of reported fraud attacks have begun to even out – and for some organizations, to decelerate. Despite that progress, fraud has still resulted in significant financial losses: 56% of respondents lost more than 500,000 (EUR/USD) to fraud in the last 12 months, and 25% lost over 1M (EUR/USD) in that time. Alloy’s State of Fraud Benchmark Report tracks shifting trends in financial fraud, based on a survey of over 450 fraud decision-makers working at banks, credit unions, and fintechs in the US and UK. The report offers an inside look at how companies prepare for, experience and respond to fraud, and how that fraud translates to direct financial losses. This year’s report revealed a drop in the number of companies that have experienced 1,000 or more fraud attempts over the past year: In 2023, 35% of companies experienced 1,000+ fraud attempts, down from 47% in 2022. But it’s not all good news: 61% of companies saw an increase in attempted fraud attacks committed through consumer accounts in the past year, and 54% saw an increase in attempted fraud attacks committed through business accounts. “It’s encouraging to see companies getting fraud volume under control using the wide array of identity data and technology available on the market,” said Tommy Nicholas, CEO and co-founder at Alloy. “But fraud remains a critical problem because bad actors are always finding new tools—such as generative AI—to steal increasingly large amounts of money.” On the bright side, business sectors investing in the implementation of new fraud tools were more likely to see decreased fraud attempts last year. 24% of enterprise fintechs and 43% of mid-market banks said fraud attacks by consumer and business accounts decreased at their organizations in 2023. At the same time, 37% of enterprise fintechs and 60% of mid-market banks said they were investing in the implementation of new fraud tools, suggesting that their use of outside technologies may be helping to diminish their fraud volumes. In 2024, more companies are poised to continue their investments in fraud prevention solutions: 75% of companies across all sectors said they plan to invest in an identity risk solution in the next year. Though identity solutions are helping companies make progress in the fight against fraud, certain types of financial crime continue to plague companies. Businesses across the US and the UK ranked authorized push-payment (APP) fraud as their top fraud driver last year by case volume and losses. Looking ahead, US/UK companies ranked AI-driven fraud (24%) as the type of fraud they are most concerned about in 2024. With both APP fraud and AI-driven fraud frequently resulting from scams targeted at individual consumers, many US/UK companies (53%) also plan to invest in anti-scam education tools over the next year. Alloy’s report was fielded in November 2023 and includes respondents from growth fintechs (1-100 employees), strategic fintechs (101-500 employees), mid-market fintechs (501-100 employees), enterprise fintechs (1000+ employees), regional banks (<$10M AUM), mid-market banks ($10B - $50B AUM), enterprise banks (>$50B AUM), credit unions/community banks, and online/pure play lending institutions. The report was conducted on behalf of Alloy by Qualtrics, a leading survey platform that powers more than one billion surveys every year. For more insights, read the full report here. About Alloy Alloy solves the identity risk problem for companies that offer financial products. Today, over 500 banks and fintechs turn to Alloy’s end-to-end identity risk management platform to take control of fraud, credit, and compliance risks, and grow with confidence. Founded in 2015, Alloy is powering the delivery of great financial products to more customers around the world. Learn more at alloy.com.
Looking at the year’s top trends in embedded finance risk management and compliance
Financial crime trends and predictions, according to UK fintechs
Learn how fraud impacted banks, fintechs, and credit unions in Alloy's annual fraud benchmark report.
We examine some highlights from 2023 and break down Alloy's year by the numbers.
