Juniper Research warns that the rise of AI-enabled scams will significantly increase fraudulent transactions in digital banking, prompting a shift towards real-time, intelligence-led risk management strategies.
Fraud in digital banking and money transfers is set to become far more difficult to contain as artificial intelligence lowers the cost of carrying out convincing scams, according to Juniper Research. The company said fraudulent transactions in these channels are expected to rise to 2.2 billion by 2031, up from 773.7 million in 2025, as attackers use AI to scale personalised social engineering and target customers rather than banking systems directly.
The shift matters because it changes the economics of fraud. Juniper Research said generative AI is helping criminals create more adaptive scams, while agentic AI can coordinate multi-stage attacks and alter tactics as victims or controls respond. That makes fraud less like a one-off transaction problem and more like a moving risk that can develop across the full customer and payment journey.
For finance chiefs, the implications go beyond direct losses. The report argues that fraud can now lead to operational disruption, customer redress costs, regulatory penalties and damage to reputation, putting prevention firmly within wider financial risk management and internal controls. Juniper Research also said banks should move away from simply flagging suspicious transactions and instead build a continuous view of customer risk by combining behavioural, identity and payment signals.
That approach, the report suggests, could let lenders intervene before a payment is authorised. It also raises a sharper question for CFOs: whether spending on fraud and risk technology can prove measurable returns, rather than only detecting suspicious activity after the fact. Juniper Research set out that case in a white paper on AI-driven banking fraud, which points to a broader shift towards real-time, intelligence-led prevention.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
