2025 Fraud Wrapped: The Playlist Nobody Asked For
Fraud increased across every category in 2025, creating historic losses for financial institutions. This article reviews the most impactful fraud trends, including ATM attacks, AI-enabled crime, rising remediation costs, and regulatory pressure, and outlines why automation, resilience, and strategic partnerships are critical heading into 2026.
Spotify wraps your playlists, Amazon audits your purchases, and Allied curates your year in insights — spotlighting what resonated (and kept you awake at night) most throughout 2025.
Historic natural disasters flooded and burned through communities across the country. Regulatory scrutiny intensified, bringing heightened oversight and penalties. Artificial intelligence advanced faster than most strategic plans could keep up.
Can you guess what underscored massive losses?
Fraud.
ICYMI: Fraud rose in every category in 2025. (Yes, that's sarcasm.) You couldn't miss the crushing weight of fraud: You felt it in the boardroom, in operational strain, and on the bottom line.
And yet –
Even in this high-fraud environment, Allied Solutions is continually impressed by the resilience and steady response of our financial institution partners. Your ability to adapt, respond, and stay focused on your accountholders has strengthened our commitment to supporting you.
ATMs took a hit (and run) this year. ATM losses surged due to hook-and-chain and jackpotting attacks. Criminals ripped standalone ATMs off their foundations and exploited settings to drain machines of cash, often without triggering alarms.
Our most downloaded ATM resource (Armor Your ATMs: A Proactive Defense Against Evolving Threats) tackled these attacks head-on with 12 tips to prevent jackpotting and other practical security considerations to protect your ATMs — and your accountholders.
Fraud is a team sport — and AI isn't an optional player. As fraud rises, financial institutions are tightening lending parameters while still balancing accountholder security and convenience. Credit unions, in particular, found themselves in the crossfire.
Tune in to the most-listened-to podcast of the year, CUs in Crisis: On the Frontlines of Fraud, Liability, & Insurance, for a candid conversation about rising fraud exposure, liability risks, and how credit unions are using AI to respond more strategically.
2025 was the most expensive year of fraud. From phantom paychecks to title washing and psychologically manipulative phishing, losses multiplied across channels, transactions, and the lending lifecycle. Simply put: 2025 was the costliest year of fraud on record. What tidings of comfort and joy.
Fraud inflation is real. For every dollar lost to fraud, it costs an FI $5.75 to remediate. Our most-read blog, The Costliest Year of Fraud, explores how scaled AI and strong enterprise cyber hygiene strengthen defenses against fraud — without adding accountholder friction.
One Thing You Can’t Wrap Up This Year
Fraud prevention doesn't pause for year-end planning. The regulatory shift is coming. AI's evolution is inevitable. And your portfolio exposure may be higher than it appears.
Stay stable but agile. Financial institutions that invest in the right automation, expert guidance, and strong partnerships with peers and CUSOs will be best positioned to shrink the ripple effects of fraud.
Here's to a strong, successful, and more resilient 2026!
Visit Allied's brand-new Fraud Prevention Center for frontline insights and real-world fraud prevention tactics.