European banks face rising fraud from AI, virtual assets

A survey of 200 European fraud leaders, conducted with NICE Actimize, found increases in fraud across card transactions, account takeover, payment flows enabled by artificial intelligence and activity tied to virtual assets. The findings were presented ahead of a webinar on fraud in 2026.

Respondents reported higher volumes of classic fraud types such as card fraud and account takeover alongside growing incidents linked to virtual assets and AI-enabled payment activity. Fraud teams identified schemes that use automated or synthetic identities to generate high-volume transfers and scams connected to trading and transfers in virtual assets.

The survey found banks are investing in artificial intelligence and advanced analytics to detect anomalies and extend coverage across channels. Larger institutions and banks in well-resourced markets reported faster deployment of machine learning models, real-time transaction monitoring and cross-channel intelligence. Smaller and regional banks reported gaps in staffing, budgets and access to modern platforms.

Institutions detailed technical and organizational barriers that slow deployment of automated detection and prevention tools. Respondents cited legacy systems, difficulties integrating data across silos, a shortage of labeled training data, long procurement cycles and regulatory requirements as factors that extend implementation timelines.

Banks reported prioritizing monitoring and analytics that cover multiple channels and forming partnerships with vendors that provide prebuilt models and managed services. Several respondents described hybrid approaches that combine in-house analytics with third-party solutions to accelerate capability upgrades and lower implementation overhead.

The survey highlighted market differences in fraud expertise, funding and tooling that produce uneven protection across Europe. Respondents flagged the intersection of new payment flows and AI as a near-term concern and said many institutions lack mature controls for those channels.

A webinar hosted in association with NICE Actimize will feature industry speakers, including Chris Ainsley, head of fraud risk management at Santander, with Sharon Kimathi, a researcher, moderating. The online event will review the fraud patterns identified in the survey, the tools banks are deploying and planned budget allocations through 2026.