Alkami Research Studies Reveal Industry Perceptions on Fraud Prevention and Data Protection

Rhea-AI Summary

Alkami Technology (Nasdaq: ALKT) has released research findings on fraud prevention and data protection in digital banking. The study reveals that fraud losses reached $12.5 billion in 2024, marking a 25% increase from 2023. 77% of financial institutions anticipate record-high fraud cases in 2025, with 33% acknowledging the need for enhanced security measures.

Key findings show that 67% of banks and credit unions would consider incentivizing customers to adopt stronger cybersecurity practices. The research also indicates that 93% of digital banking Americans prioritize protection from financial fraudsters and hackers, while 91% value protection from unauthorized third parties.

Positive

• Strong market positioning in digital banking security solutions
• J.D. Power certification for outstanding mobile banking platform
• High consumer demand for security services (93% prioritize data protection)

Negative

• 33% of financial institutions admit inadequate fraud prevention measures
• Significant increase in fraud losses (25% YoY) indicates growing security challenges

Studies show banks and credit unions need to enhance prevention strategies; consumers want data protection in their digital banking experience

PLANO, Texas, March 28, 2025 /PRNewswire/ -- Alkami Technology, Inc. (Nasdaq: ALKT) ("Alkami"), a leading cloud-based digital banking solutions provider for financial institutions in the U.S., announced today the findings of research that examined both financial institutions' evolving approach to fraud prevention and consumers perceptions on data protection within the digital banking experience.

Fraud losses reported by consumers and companies in 2024 totaled more than $12.5 billion, a 25% increase over losses reported in 2023. With financial fraud on the rise, Alkami's proprietary research¹ reveals that financial institutions are bracing for what 77% believe will be an all-time high in fraud cases in 2025, with 33% needing to do more to safeguard account holders from evolving fraud tactics. Notably, 67% of surveyed banks and credit unions would be open to incentivizing account holders to adopt stronger cybersecurity practices, recognizing the need for a more collaborative approach to fraud prevention.

To further strengthen fraud prevention, financial institutions are prioritizing proactive measures such as implementing real-time fraud detection with a multi-layered approach and expanding educational initiatives on emerging schemes and techniques for account holders to combat attempts and enhance security.

"With digital advancements accelerating, financial institutions play a critical role in leading fraud prevention and data protection efforts," said Brad Cranford, director of product management at Alkami. "Digital banking users are aware of the increased threat to their financial well-being, and they are looking to their financial institution to protect their assets and reinforce trust."

Recent research highlights just how much consumers value data security. The Generational Trends in Digital Banking Study commissioned by Alkami found that 93% of digital banking Americans (in total across all generations) indicated that protecting data from financial fraudsters and hackers was important or very important to them, while 91% of respondents indicated that protecting data from other unauthorized third parties was important or very important to them.

Financial institutions looking to enhance their fraud prevention and data strategies can explore Alkami's Digital Banking Solutions here.

Alkami has been certified by J.D. Power for providing "An Outstanding Mobile Banking Platform Experience²."

About Alkami 

Alkami Technology, Inc. is a leading cloud-based digital banking solutions provider for financial institutions in the United States that enables clients to grow confidently, adapt quickly, and build thriving digital communities. Alkami helps clients transform through retail and business banking, digital account opening, payment security, and data and marketing solutions. To learn more, visit www.alkami.com.

Media Relations Contacts
Vested
alkami@fullyvested.com 

Marla Pieton
marla.pieton@alkami.com 

1 Alkami Proprietary Research - 179 digital banking platform decision makers/influencers were surveyed across banks and credit unions. Data collected October 2, 2024 – November 8, 2024.
2 J.D. Power 2024 Mobile App Platform Certification ProgramSM recognition is based on successful completion of an audit and exceeding a customer experience benchmark through a survey of recent servicing interactions. For more information, visit www.jdpower.com/awards.

   

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SOURCE Alkami Technology, Inc.

FAQ

How much did fraud losses increase in 2024 according to Alkami's research?

According to Alkami (ALKT), fraud losses reached $12.5 billion in 2024, representing a 25% increase from 2023.

What percentage of financial institutions expect record fraud cases in 2025?

77% of financial institutions surveyed by ALKT expect fraud cases to reach an all-time high in 2025.

How many banks and credit unions would consider incentivizing cybersecurity adoption?

67% of surveyed banks and credit unions would be open to incentivizing account holders to adopt stronger cybersecurity practices.

What percentage of digital banking Americans prioritize protection from financial fraudsters?

93% of digital banking Americans indicated that protecting data from financial fraudsters and hackers was important or very important to them.