European banks face rising multi-channel fraud in 2026

A survey of 200 European fraud leaders, conducted in association with NICE Actimize and presented at a webinar, finds banks across Europe are facing rising multi-channel fraud in 2026. Institutions report increases in both established fraud types and new attack vectors.

Card fraud and account takeover remain common across institutions. Newer threats cited in the survey include AI-initiated payment flows and fraud linked to virtual assets, with respondents reporting impacts across payments, online banking and emerging channels.

Banks are increasing use of advanced analytics and machine learning to detect suspicious activity. Participants in the survey reported investments in AI models and cross-channel monitoring tools to expand detection and monitoring coverage.

Practical obstacles are slowing modernisation. Respondents identified integration with legacy systems, poor data quality and slow operational rollouts as the main barriers to deploying new detection capabilities quickly.

The survey found uneven levels of expertise, funding and tools across European markets. Larger banks reported dedicated teams and budgets for machine learning and monitoring platforms. Smaller and regional banks reported gaps in staffing and technology that limit their ability to respond to fast-moving fraud trends and to share intelligence across channels.

Confidence in existing prevention capabilities varied. Several participants expect improvements as AI and automation are deployed more widely. A sizable portion indicated current systems will not be adequate to handle the evolving threat environment without additional investment and operational change.

Investment priorities identified for 2026 and beyond included AI and machine learning, stronger identity verification, richer transaction monitoring and improved coordination between fraud, risk and IT teams.

Panelists at the webinar included Chris Ainsley, Head of Fraud Risk Management at Santander UK; Joe Bristow, Product Director and fraud subject-matter expert at NICE Actimize; and Sharon Kimathi, who moderated the discussion. The panel reviewed controls that have remained effective, such as rule-based filters combined with behavioural analytics and models that flag anomalous payment patterns across channels.

Speakers noted model performance depends on clean, timely data and on the ability to turn alerts into effective case workflows. They also raised concerns about automated payment flows that can move funds rapidly and virtual-asset activity that creates opportunities for layering and obfuscation that some monitoring tools may miss.

Respondents reported that regulatory uncertainty and rapid product innovation complicate efforts to expand visibility into new channels. The survey was conducted for a webinar held in 2026 to map fraud patterns and discuss priorities for fraud, risk and compliance leaders across payments, online banking and virtual assets.