European Banks Face Rising Fraud Complexity in 2026

A Finextra survey of 200 fraud leaders across Europe, produced in association with NICE Actimize, found rising fraud complexity in 2026 and uneven adoption of artificial intelligence for fraud controls.

Respondents reported that traditional fraud types such as card fraud and account takeover remain common. They also flagged emerging threats linked to AI-initiated payment flows and fraud connected with virtual assets. Respondents described a wider mix of threats appearing across payments and other channels.

Banks are expanding use of AI for detection and response. Survey participants identified AI and analytics as top investment areas for 2026, alongside automation of detection and response and closer monitoring of payments and virtual asset flows. At the same time, many participants said integrating AI tools into existing fraud-control systems has been slow.

Integration challenges were listed by respondents as a key barrier to deploying AI at scale. The survey found disparities in readiness: some institutions expressed confidence that current programs can be adapted, while others pointed to gaps in expertise, funding and tooling that limit their ability to update defenses quickly.

Smaller or less well-resourced organizations reported greater difficulty keeping pace with fraud trends and technology change. Respondents said they are refining controls for established channels such as card transactions and account access while piloting solutions for newer risk areas.

Finextra will host a webinar in association with NICE Actimize, moderated by researcher Sharon Kimathi, to discuss survey findings. The event will cover how institutions are adjusting fraud controls, which tools have delivered results and how teams handle trade-offs between rapid technology adoption and operational integration.

Background material included with the survey emphasized the need for improved controls and deeper understanding of emerging fraud tactics as threats increase across payment channels and virtual asset activity.