Alloy's 2023 State of Fraud Benchmark Report

Fraud has become a growing problem for financial institutions (FIs) of all sizes — and it not only threatens individual organizations, it threatens the viability of the financial services industry as a whole.

We’ve all seen the headlines and heard stories of fraud attacks becoming more prevalent and more sophisticated over the last few years. But to get to the bottom of just how big a problem it has become, Alloy surveyed more than 250 decision-makers working in fraud-related roles at financial institutions ranging from startup fintech companies to enterprise banks.

The result is Alloy’s inaugural State of Fraud Benchmark Report, and the insights are striking.

• 91% of respondents said that fraud rates have increased at their organization YoY.
• 71% have increased spending on fraud mitigation.
  
• Nearly all companies have revised existing policies and controls for fraud prevention in light of the evolving fraud landscape.
  
• The most common reason organizations cited for not being prepared for fraud was a greater need for automation.
  
• Over half the companies surveyed are using or looking into using an Identity Decisioning Platform (IDP).
  
• FIs are most concerned about synthetic identity fraud in the coming year.
  

The survey was conducted by Qualtrics, a leading survey platform that powers +1B surveys every year.