European banks upgrade fraud controls as AI, crypto threats rise

A survey of 200 European fraud leaders conducted with NICE Actimize found an increase in fraud linked to AI-initiated payment flows and schemes using virtual assets, and reported banks are moving to strengthen controls in 2026. The findings were published ahead of an upcoming webinar hosted with NICE Actimize.

Respondents identified continued pressure from traditional fraud types such as card fraud and account takeover, while newer vectors driven by automated payment flows and virtual-asset channels increased both the volume and complexity of incidents. The survey indicates these emerging channels are a growing part of the threat picture across Europe.

Many institutions are deploying artificial intelligence and machine learning to expand detection and response. Survey participants described efforts to use models to spot unusual payment patterns, link activity across multiple accounts, and speed investigations through automation. Participants also reported that integrating new tools with legacy systems is a key challenge that slows deployment.

The survey highlights uneven capabilities across European markets. Some banks reported stronger fraud expertise, larger budgets and more advanced tools. Other institutions reported gaps in funding, staffing and technical capacity that limit options for model deployment, threat intelligence sharing and monitoring of virtual-asset activity.

Investment priorities identified by respondents include AI and machine-learning systems, broader monitoring across payment rails and virtual-asset channels, and upgrades to rule engines and alert-management systems aimed at reducing false positives and improving analyst productivity.

An upcoming webinar with NICE Actimize will present the survey results and examine which controls are producing measurable results. Panelists include Chris Ainsley, Head of Fraud Risk Management at Santander UK, and Joe Bristow, Product Director and Fraud SME at NICE Actimize, with a researcher from the survey organizer serving as moderator.

Background material for the session notes that while card fraud and account takeover remain important threats, the combination of automated payment flows enabled by AI and fraud involving virtual assets has created additional operational and investigative demands. The survey frames 2026 as a year when many banks plan to accelerate upgrades and expand technical capacity to address these threats.