Feedzai, the company behind a new global index measuring fraud preparedness, has found that banks and FinTechs believe they are better equipped to fight the next generation of fraud than their actual capabilities show.

The study, titled Confidence & Capability: The Feedzai Fraud Readiness Index 2026, gathered responses from over 1,000 senior fraud leaders in 12 countries. Institutions gave themselves an average readiness rating of 80.2 out of 100.

When Feedzai assessed their real capabilities in data, AI, intelligence sharing and fraud team operations, that figure fell to 66.9, a shortfall of 13.3 points.

According to the report, this gap shows that financial institutions understand the threat posed by AI-driven attacks and are working to address it, yet their execution still trails their confidence. The areas most in need of attention include linking data sources more effectively, adopting more advanced AI tools such as agents, and reducing hours lost to manual data gathering.

Money does not appear to be the barrier. Some 96% of respondents anticipate higher spending on AI-powered fraud tools over the coming two years. However, foundational problems continue to hold teams back.

Almost three quarters (73%) report that analysts devote too much effort to extracting data from multiple systems rather than investigating threats, making it the most frequently cited frustration in the study. Just 41% have full data integration across fraud, anti-money laundering, compliance and cybersecurity functions.

In real terms, an analyst reviewing a questionable transaction may need to consult several disconnected platforms before building a complete view of the customer, with each delay reducing the time available to stop fraud.

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