Fraud Moves Fast. Are You Keeping Up?

Fraud today doesn’t just exploit systems – it exploits people.

From phishing text messages and social media scams to fake financial apps impersonating trusted brands, fraudsters are becoming more relentless and convincing. Their intent is clear: target your customers, your employees, and your reputation.

The result? Consumers are unknowingly authorizing fraudulent transactions – putting money directly into the pockets of bad actors – leaving financial institutions to absorb the losses.

Meanwhile, the volume of compromised account credentials continues to accelerate. Although the total number of data breaches plateaued between 2023 and 2024, the number of affected accounts surged, with financial services becoming the top-targeted industry for attackers – a position it hasn’t held since 2017.

This shift reflects an urgent reality: fraudsters succeed due to widespread data exposure and fragmented financial behavior that legacy tools weren’t built to monitor.

Are Your Fraud Prevention Methods Outdated?

Fraud has fundamentally changed. It’s no longer just a system issue – it’s a people issue.

Several factors expose critical blind spots in legacy fraud prevention methods, including data and financial behavior. Data is more exposed than ever, and fraudsters have access to vast amounts of stolen identity data, enabling highly convincing, AI-generated scams that operate at a speed and scale capable of bypassing static detection controls.

What’s more, today’s accountholders manage 15 to 20 financial relationships across banks, credit unions, fintechs, and payment apps – leading to fragmentation that limits visibility into the full picture of an accountholder’s financial activity.

Why Interconnected Fraud Prevention Matters

Bad actors are organized and interconnected, but the systems meant to stop them are often fragmented and siloed.

Fraud prevention is a shared responsibility. It doesn’t stop at the walls of your bank – it flows across entire financial ecosystems.

As fraud threats evolve, the demand for proactive and integrated strategies and secure intelligence exchange is crucial. Yet, the lack of a modern, coordinated infrastructure for anti-fraud intelligence sharing remains a critical vulnerability. In fact, the U.S. ranked number one globally for scam losses in 2024, with an average of $3,520 lost per victim.

Without a unified approach and powerful intelligence-sharing rails, you risk operating with the same limited visibility that fraudsters exploit.

Proactive Fraud Prevention Checklist

To lead in 2025 and beyond, you must adopt a broader, more connected approach:

• Enable smarter data aggregation: Use open banking APIs to increase visibility, improve real-time anomaly detection, consolidate fragmented data, and reduce risky credential sharing.
• Prepare for Section 1033: Though not fraud-specific, this regulation supports secure, standardized data access. Early adoption fosters innovation and a security-minded strategy.
• Strengthen authentication beyond passwords: With phishing and credential stuffing on the rise, shared secrets are insufficient. FIDO passkeys and tokens should be the default standard.

Effective fraud prevention isn’t about doing more alone – it’s about doing better together.

Banks that embrace secure intelligence sharing, adopt stronger standards, and collaborate will be better positioned to protect customers and preserve trust.

Unlock powerful fraud prevention with Jack Henry™.