AI is also a part of the solution
Despite the concern, many consumers believe AI can improve fraud detection. 43.5% of survey respondents say that knowing their financial institution uses AI for fraud prevention would increase their confidence in that institution. Another 41% say they are at least interested in using AI-powered tools to monitor their accounts.
Interest among SBOs is even stronger. Nearly 70% of SBO survey respondents say AI fraud detection would make them feel more secure. This is an essential takeaway for financial institutions. Clients are not rejecting AI; they want to know it is being used responsibly and effectively to protect their financial security.
More intelligent detection with Abrigo Fraud Detection
Abrigo Fraud Detection uses AI and machine learning to identify suspicious patterns across channels while improving efficiencies. By combining behavioral analytics with real-time risk scoring, the solution helps institutions detect and stop fraud faster. More importantly, it improves operational efficiency by reducing the number of false alerts that drain time and resources.
This advanced technology matters because the true cost of fraud goes far beyond the dollar amount stolen. It includes hours spent investigating cases, losses in client trust, and emotional strain on victims. In the survey, 56.4% of fraud victims reported stress or anxiety, and 54.1% said they spent significant time resolving the issue. With Abrigo, institutions can take action earlier, resolve fraud faster, and avoid unnecessary disruptions for legitimate clients.
Awareness and education gaps remain
While many respondents hope AI can enhance fraud prevention, more than half say they need to learn more before feeling confident in its role. At the same time, 52% of respondents do not know whether their bank uses AI for fraud detection. This lack of understanding suggests that even well-developed fraud prevention programs may fall short if not clearly communicated to clients. Educational efforts that explain how AI safeguards financial data could go a long way toward building trust, especially among the most concerned demographics.
Key fraud trends for banks
The rise of AI-enabled scams coincides with broader fraud trends that clarify the urgency of the situation. In the past year alone, 26.4% of respondents experienced fraud in their financial accounts. Of those affected, more than half reported stress or anxiety, and 40% suffered economic losses. SBOs reported higher exposure and spent more time resolving fraud incidents.
These findings reflect a broader sentiment that fraud is no longer an abstract threat but a frequent and disruptive reality. Yet only 10.1% of survey respondents feel prepared to defend against emerging threats. More than 68% say banks should carry the primary responsibility for protecting consumers from fraud.
Moving forward: Clear strategy and communication
Financial institutions have an opportunity to lead in both action and education. That starts with a clear strategy for adopting and communicating the use of AI in fraud detection. It also means investing in tools that effectively detect suspicious activity and offer meaningful transparency to clients.
Clients want to know their financial institution is paying attention to the threat landscape and adjusting accordingly. They want real-time alerts, stronger authentication options, and reassurance that modern tools protect their financial data.
Understanding how AI is used in fraud is no longer just a technical issue. It is central to the client experience, risk management, and institutional trust. Banks and credit unions that take a proactive, transparent approach will be better positioned to retain client confidence and respond effectively to AI as an evolving threat.
