Almost two thirds of the world’s banks say they are unprepared for the rising threat of fraud.

Financial crime technology provider Themis, and business payments experts, Bottomline, revealed the growing complexity of fraud and the rise in the use of Artificial intelligence (AI) by criminal organisations is testing the banking sector’s security systems on a constant basis.

The two have published a research-based whitepaper detailing the most critical fraud risks facing commercial banks in 2025. Drawing on an industry-wide survey of commercial banking professionals across North America and the UK, the whitepaper identified fraudsters’ evolving tactics and the vulnerabilities financial institutions must address to stay ahead.

The whitepaper said the results of the research highlights the dynamic interplay between internal and external fraud risks, including how vulnerabilities within organisations often intersect with sophisticated external threats.

“Fraudsters are leveraging advanced technologies faster than ever, which means banks need to adapt rapidly to secure their systems and client trust,” said Dickon Johnstone, CEO of Themis.

The whitepaper examined what it described as the evolving tactics fraudsters use to exploit gaps across traditional payment methods, such as credit cards and cheques, as well as emerging payment technologies and financial services, including open banking.

By analysing these intersections, the research has uncovered patterns and opportunities for enhancing fraud prevention strategies across both established and innovative financial ecosystems.

Key findings from the survey include:

Generative AI Threats: Half of respondents (50%) identified AI-driven fraud as a top concern for 2025.

Financial Service Trends: 62% of survey respondents highlighted online account opening and client onboarding as one of the top service trends with greatest potential to increase their bank’s fraud exposure followed by the rise of open banking at 59% and increased automation of services at 55%.

Emerging Technologies Impact: Open banking (66%), biometric authentication (57%), and generative AI (48%) are seen as the most impactful technologies influencing fraud risk profiles.

Insider Risks: Collusion between internal and external actors remains a growing concern, with 46% of respondents flagging it as a top threat.

Preparation Gaps: Two-thirds (66%) of respondents feel their bank is only somewhat prepared to address emerging fraud risks.

“The research underscores the growing sophistication of fraud tactics,” Themis added. “Deepfakes, synthetic identities, and the rise of Fraud-as-a-Service (FaaS) are set to disrupt traditional fraud detection methods.

“Moreover, automation of banking services—cited by 55% of respondents as a major fraud driver—exacerbates exposure to risks like unauthorised transactions and privilege misuse.”

In light of the increasing overlap between insider and external fraud threats, the report advocates for more effective industry partnerships and advanced systems integration.

“This whitepaper is an essential resource for banks navigating a rapidly evolving fraud landscape. By using the insights from this research, banks can confidently position themselves to tackle both emerging and traditional threats head-on,” added Dalit Amitai, head of product and technology, Bottomline.