The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding the cybersecurity awareness content herein. The opinions expressed in this article are the opinions of the individual authors and may not reflect the opinions of MeridianLink, Inc.
Fraud Is Rising and FIs Are on the Frontline
October is Cybersecurity Awareness Month and for financial institutions, it’s more than an annual reminder. It’s a call to action.
Fraud losses surged to $12.5 billion in 2024—a 25% increase—while 60% of FIs reported rising fraud attempts. The threats aren’t slowing down. And the most frequent offenders? Credit card fraud, account takeover, identity theft, and check fraud.
But here’s another tough truth: only 1 in 3 financial institutions catch fraud at onboarding. Most fraud is detected after accounts are open and damage is already underway. That first interaction—the one meant to build trust—too often becomes the fraudster’s way in.
The Balancing Act
You’re under pressure to deliver faster, simpler, digital-first onboarding. Consumers expect it. Competitors promise it. Meanwhile, fraudsters are working overtime with synthetic IDs, AI-generated data, and stolen credentials.
It’s no wonder many institutions delay fraud checks until later in the flow. A common perception is that more security equals more friction, and more friction equals lost accountholders.
But that’s an outdated tradeoff. With the right technology, a simple, secure digital onboarding experience is within reach. And when consumers see you protecting their information without slowing them down, confidence grows. And confidence can be a key driver of loyalty.
The challenge comes when your systems can’t keep pace with modern fraud, creating blind spots that undermine trust.
Four Blind Spots That Put Trust at Risk
From our work with thousands of FIs, the same challenges come to light:
- Fraudsters are evolving faster than defenses. Synthetic identities, AI-generated data, and stolen credentials are sophisticated enough to fool traditional checks.
- Legacy systems weren’t built for this fight. Designed for an earlier era of account opening, they can’t keep pace with the scale and speed of today’s threats.
- Tools don’t always talk to each other. Siloed fraud solutions leave gaps, forcing institutions into reactive monitoring instead of proactive protection.
- Fear of friction stalls progress. Many leaders delay stronger checks, worried about drop-off. But in reality, smart verification can strengthen both security and experience.
A Better Way Forward
Security and simplicity aren’t opposites anymore. Done right, they strengthen each other. When consumers see you protecting their information without slowing them down, trust grows. And trust fuels growth.
At MeridianLink, we help institutions close that gap with a smarter, more connected approach.
- Advanced partner integrations
Through our robust marketplace and open APIs, we connect you to best-in-class solutions like AI-powered fraud detection and real-time identity verification. These tools empower you to stop threats at the source, strengthen consumer trust, and stay ahead of evolving fraud tactics.
- Easy-to-configure workflows and rules
Fraud moves fast—your defenses need to move faster. Our flexible workflows let your teams adjust parameters, fine-tune risk models, and adapt in real time, all without heavy IT support. That agility means you can act on threats today instead of months from now.
- A seamless application and onboarding journey
First impressions matter. Our platform weaves protection directly into the onboarding experience, ensuring consumers enjoy fast, intuitive applications while your institution quietly handles the heavy lifting. The result? Less abandonment, stronger trust, and growth that scales securely.
Listen to this experience from one of our customers.
Every FI plays a role in building a Cyber-Strong America. Discover how we can help you lead with trust and drive growth.
