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.
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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.
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.
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.
Learn how fraud impacted banks, fintechs, and credit unions in Alloy's annual fraud benchmark report.
Financial crime trends and predictions, according to UK fintechs
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We examine some highlights from 2023 and break down Alloy's year by the numbers.
Kyle Caldwell, Senior Vice President of Fraud Product Development at M&T Bank, discusses exploring Identity Verification vendors, striking the tricky balance of risk management alongside positive customer experiences, and how taking big risks in his personal life has paid off.
Check fraud is in its golden age, and fraud risk management has never been more important. Protect your assets with Alloy’s fraud prevention know-how.
NEW YORK, Nov. 30, 2023 — Narmi, a leading provider of digital banking solutions, today announced an integration with NeuroID, the leader in fraud detection through behavioral analytics. Facilitated by joint partner Alloy, the identity risk management company, the NeuroID solution marks a pivotal step in Narmi’s fight against fraud. The partnership will empower mutual clients leveraging the Alloy platform to use real-time behavioral insights that will revolutionize their approach to fraud prevention. NeuroID's technology tracks and analyzes an applicant's unique behavior during the account opening process, providing a valuable additional layer of data for fraud detection in Alloy and streamlining the user experience for legitimate customers. Jack Alton, CEO of NeuroID, said, “NeuroID is thrilled to integrate with Narmi via the Alloy platform. This partnership will give community and regional financial institutions access to an untapped suite of top-of-funnel digital insights that are critical to evolving fraud prevention efforts. Tracking digital behavior allows financial institutions to decipher between bad actors, bots, and fraud rings, and fast-track legitimate opportunities with precision and speed.” With almost five years of partnership, Narmi and Alloy continue to work to deliver impressive results for community and regional financial institutions. Financial institutions currently utilizing NeuroID via Alloy have seen reductions in fraudulent applications as high as 35%, showcasing the strength of the technology. The integration occurs seamlessly on the back end, demonstrating Narmi’s commitment to delivering an account opening experience that prevents fraud without sacrificing user experience. “Fraud is constantly evolving. As a custodian of Account Opening solutions to financial institutions, it's our responsibility to continue to advance our fraud and risk offerings so banks and credit unions can remain safe and protected,” said Edwin Akrong, VP of Product at Narmi. “Narmi is dedicated to ensuring that our customers always have the most effective fraud prevention tools.” Brian Bender, Vice President of Strategic Alliances at Alloy added, “Fraud is an increasingly growing and complex challenge so we are thrilled to bring NeuroID to Narmi’s current and future customers.” About Narmi New York City-based Narmi's digital platform empowers financial institutions to unlock the very latest capabilities in digital banking and account opening, enabling them to move faster, tap new growth opportunities, and achieve true digital transformation. The Narmi platform was built with the customer experience in mind, empowering financial institutions with an experience that is always effortless, current, and dependable. As a result, Narmi's customers are seeing as much as 3x account growth in less than 30 days and 4x deposit growth in as little as 90 days. Additionally, Narmi's financial institution clients are winning awards like Bankrate's 2020 Best Online Bank and Nerdwallet's Best Bank of 2021 for Online Experience. For more information, please visit www.narmi.com. About NeuroID NeuroID, the global leader in behavioral analytics, offers a friction-free, privacy-centered, and tailored solution to digital identity screening. After more than a decade of researching human-online interactions, our solutions provide a front line of defense by differentiating between genuine users and potential threats in real time. NeuroID solutions assess a user's intent—be it a genuine prospect, fraudster, or bot—by analyzing their interactions with a digital device. Our unique crowd-level insights, paired with expert guidance support modern risk management so global leaders can see fraud faster, reduce losses, and increase savings. Learn more at https://www.neuro-id.com/. 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.
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NEW YORK, Oct. 18, 2023 -- Alloy, the identity risk management company, is expanding its credit underwriting capabilities to support banks, fintechs, and other builders of financial products in managing their holistic credit risk. In a challenging macro-environment, Alloy enables lenders to make smarter credit decisions, capture default risk, and increase revenue by identifying upsell and cross-sell opportunities. Alloy also automates credit line management and product remarketing, helping lenders maintain appropriate credit limits and proactively extend new product offers to customers. Lenders rely on Alloy’s established credit underwriting capabilities to offer credit products to more people with less risk. Alloy allows lenders to automate their credit decisions using identity data gathered during onboarding, credit bureau data, and alternative underwriting data. Lenders can make credit decisions using custom models, building anything from basic workflows to complex matrix models right within Alloy. Alloy’s updated credit offering builds upon these existing capabilities to offer a comprehensive and proactive approach to credit management beyond origination, enabling banks and fintechs to monitor for credit risk throughout the customer lifecycle. New features include: Automated, scheduled checks using the richest set of credit signals to monitor the ongoing financial health of borrowers: Lenders can incorporate fresh data pulls into their decisioning from a wide range of third party data sources: including credit bureau data, alternative underwriting data, and their own proprietary data. This comprehensive approach enables lenders to build a more complete picture of a borrower's creditworthiness and potential risks and carry out more data-driven decisions.Real-time alerts sent to lenders to notify them about changes in a borrower’s risk (e.g. if a borrower declares bankruptcy): Lenders can then take proactive measures to prevent the accumulation of high-risk loans.Automated line management: Lenders can maintain appropriate credit limits and terms through continuous monitoring to determine if customers qualify for a credit line change based on behavior and automatically conduct line adjustments.Automated credit remarketing process: Lenders can monitor positive customer behaviors like timely repayments and salary increases and can offer good customers new products, ultimately increasing their company revenue. “Historically, lenders have had to rely on point-in-time, siloed information about their borrowers,” said Parilee Wang, Chief Product Officer at Alloy. “With Alloy, lenders have a holistic solution for building a more complete picture of a borrower's ongoing creditworthiness and potential risks.” Alloy’s product investment in the credit space comes as U.S. consumer credit card debt has topped $1 trillion for the first time in history. As many borrowers face increased financial strain impacting their ability to repay debts, lenders may be forced to make difficult decisions about the creditworthiness of their applicants. At the same time, as revolving credit usage grows and consumers demand personalized, seamless experiences from their financial institutions, lenders are challenged with remaining top of wallet and staying ahead of competitors. “We were so excited to find a credit underwriting solution that lets us proactively manage our credit risk and allows us to rely on automated decisioning,” said Bobby Parker, Head of Credit at PEX Card. “The configurable platform allows us to be nimble, and we can make critical underwriting changes quickly with the appropriate controls in place. Furthermore, with the A/B test feature, and pre-built integrations with salient data providers, we can ensure our decisions are driven by data and information gain. Leaning on this solution will give us the ability to prudently grow our portfolio while driving strong risk adjusted returns.” Alloy offers the broadest coverage of third-party data in the industry with more than 190 data sources, including credit bureaus and alternative credit data providers. Some of Alloy’s partners in the credit space include: EquifaxExperianTransunionNova CreditFISZest AIPrism DataInscribeCodat About Alloy Alloy solves the identity risk problem for companies that offer financial products. Today, nearly 500 banks and fintechs turn to Alloy’s end-to-end identity risk management platform to take control of fraud, credit, and compliance risk, 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.
