Banks Face Rising Unauthorized-Party Fraud Losses
PYMNTS Intelligence and Block's 2025 report, based on a survey of 200 U.S. financial-institution executives, finds unauthorized-party schemes now drive 71% of fraud incidents and losses, up from 48% last year. Average fraud losses rose to 0.8 basis points (large banks above 3.5 bps); 68% increased detection spending and 70% use AI or behavioral analytics, with about half planning cloud platforms and more outsourcing.
Key Points
- 1Report finds 71% of fraud incidents and losses stem from unauthorized-party schemes (up from 48%).
- 2Shift signals fraudsters favor credential theft and account takeover, concentrating risk on digital payment rails.
- 3Institutions must scale AI, behavioral analytics and cloud fraud platforms; smaller banks lag, increasing vulnerability.
Scoring Rationale
Official PYMNTS-Block survey provides credible, actionable industry-wide findings; limited novelty beyond confirming evolving credential-theft trends.
Sources
Public references used for this report.
Practice interview problems based on real data
1,625 SQL & Python problems across 15 industry datasets — the exact type of data you work with.
Try 250 free problems
