Every $1 of fraud now costs U.S. financial services firms $5.47, up from $4 in 2021, according to new research by LexisNexis. At the same time, a separate study by PYMNTS.com found that U.S. financial institutions now spend more than $2 to stop every $1 lost to fraud.
The LexisNexis survey measured fraud losses in impacts to operations, compliance, consumer trust and more. Half of respondents said that in the past year, fraud had a significant impact on their businesses by eroding customer trust, with 44% also citing fraud losses as having a significant impact.
Websites and mobile apps accounted for nearly 70% of fraud losses, and 96% of institutions reported more fraud targeting mobile channels, according to LexusNexus. In addition, financial institutions estimated that AI-generated techniques contributed to 19% of fraud losses in the U.S.
The PYMNTS.com study estimated that losses per financial institution reached $1.92 million in 2026, up 8% from $1.78 million in 2024. Investment in fraud prevention – which includes spending on staff, software and outsourced fraud services – rose from $1.67 million per institution in 2024 to $4.35 million in 2026.
“So, financial institutions now spend $2.27 to stop every $1 that still gets through, more than double the $0.94 they spent in 2024,” according to the study.
The study found that large banks cut their estimated fraud losses by nearly half during the time period studied. Estimated losses for regional and community banks and credit unions increased slightly, from $950,000 per institution to $1.05 million. Nonbank financial technology firms experienced the greatest increase in fraud losses, from $800,000 to $2.84 million per institution.
