European banks face rising AI and crypto fraud

A survey of 200 European fraud leaders, conducted in association with NICE Actimize, found banks confronting rising fraud complexity in 2026. Respondents identified AI-initiated payment flows and scams tied to virtual assets alongside ongoing card fraud and account takeover incidents.

Respondents reported that many institutions are increasing investment in AI-driven detection to monitor multiple channels and scale surveillance. Machine learning is being deployed to cover established fraud types and newer automated or tokenized attacks. Banks and vendors described difficulties integrating these tools into existing detection frameworks, which has delayed the rollout of upgraded controls.

The survey showed uneven levels of fraud expertise, funding and tooling across European markets. Some institutions reported advanced analytical capabilities and dedicated budgets for modern systems. Others reported limited resources and less mature programs, which affected how quickly they can adopt new detection models, share intelligence and tune controls for emerging attack patterns.

On future readiness, fraud leaders expressed caution. Investment priorities named by respondents included expanded machine learning deployment, broader cross-channel monitoring and more frequent updates to detection rules to reflect AI-enabled techniques. Respondents also flagged practical limits to automation such as stalled implementation timelines, the need for higher-quality data for model training and the operational work required to validate automated decisions.

Respondents pointed to controls that combine automated scoring with investigator review, systems that correlate signals across payment rails and customer accounts, and tooling that supports model updates as behavior changes. Institutions said they are aligning procurement and IT, reworking data pipelines for faster model training and forming partnerships with third-party vendors to address integration gaps.

A webinar hosted alongside the survey brought fraud, risk and compliance professionals together to map the shifting threat landscape and where institutions are focusing resources. Event speakers included Chris Ainsley, head of fraud risk management at Santander, and Sharon Kimathi, a researcher at Finextra and moderator.

The survey frames 2026 as a year when fraud activity spreads across legacy and newer channels. Banks continue to maintain defenses against card fraud and account takeover while adapting controls for automation-driven payment manipulation and frauds connected to virtual assets.