Intelligence Report | November 2026 - Flipbook - Page 3
Dear Reader,
During my first year leading my daughter’s Girl Scout troop, we hit a snag during the nonprofit’s famous cookie sale. A $30 check from a customer bounced. As a result, the troop’s bank
account was hit with a fee. I remember the stress of thinking the girls could be out those funds,
more than $50, which was a significant amount to the troop at the time.
To try and salvage the situation, I reached out to the customer to see if we could get another
form of payment. Much to my relief, she was more than willing to help. The check bounced, she
said, because she had fallen victim to a scam. A fraudster had spoofed her credit union’s phone
number and manipulated her into giving up her account information. Once the credit union realized the issue, it closed her account, causing the check to be rejected. Our Girl Scout troop ended
up getting its money for the cookies, and our bank waived the fee for the returned check.
In many ways, my story is not unique. Almost everyone has experienced fraud — they have
fallen victim to some sort of scheme, a loved one has had their credit card information stolen or
a friend accidentally gave personal information to a criminal on the phone. My story is, perhaps,
different in that our Girl Scout troop didn’t suffer any losses.
That isn’t often the case. Consumers lost billions of dollars last year to fraud. Meanwhile,
banks frequently must help customers navigate the aftermath of being a victim and are often on
the hook for repaying those funds.
This report, which is sponsored by CSI, a provider of banking and risk management solutions,
takes a deep dive into this problem by exploring common types of fraud, including check fraud,
and emerging threats posed by artificial intelligence. We examine how institutions are balancing a
seamless customer experience with making it harder for criminals to steal account information and
money. We also provide solutions that bank leaders can consider to combat fraud, such as joining
a consortium or peer group to exchange data and see broader trends. Finally, the report offers
insights into the role the board should have in fraud prevention, including a checklist directors can
utilize to guide their oversight.
Fraud is, without a doubt, a significant challenge to the industry right now. Hopefully, this
report will provide you with some knowledge and tools in your fight against it.
Sincerely,
Jackie Stewart
Executive Editor
Bank Director
Contents
Banks Are Waging a Never-Ending Battle
Against Fraudsters
2
How Banks Can Fight Back Against
the Fraudsters
11
The Persistent Problem of Check Fraud
5
How Boards Can Oversee Fraud Risks at Banks
13
The Emerging Threat Posed by AI
7
Best Practices for Boards Overseeing Risks
15
The Power of (Some) Friction
9
