Insights

Somos Survey Exposes Rising Fraud Risks Facing Financial Institutions

Jan 13, 2026

EAST BRUNSWICK, N.J, January 13, 2026 — New independent research commissioned by Somos has found that fraud has become a permanent, pervasive challenge for financial institutions, with costs that extend from lost revenue and compliance strain to reputational damage and eroded trust. 

Somos released findings from its new report, “The Cost of Trust: The Impact of Fraud on Financial Institutions,” based on responses from more than 200 U.S.-based financial professionals directly involved in their institution’s fraud prevention measures. The research aimed to assess the prevalence of fraud, identify the most common types encountered and examine the resulting impacts on reputation, compliance and financial performance.

The results paint a clear picture: fraud is everywhere, it’s costly and it’s eroding trust. Nine out of ten institutions reported an increase in fraud attempts over the past year, with phishing being the most common fraud vector and 98% of institutions experiencing it. Smishing is rising fast, with 76% reporting incidents and payment scams are close behind at 75%. Vishing, robocalls, spoofing and impersonation schemes are also widespread.

Nearly every institution surveyed reported losing revenue to fraud, with almost all (99%) experiencing a loss of up to 5% of their annual revenue. Four out of five institutions said their security costs have increased due to fraud and 60% have faced higher compliance costs as well. Beyond money, fraud has harmed the most valuable asset institutions have: customer trust. More than half of respondents said fraud has damaged that trust, with phishing leading the list of threats.

The report also highlights how the industry is responding. Telecom asset management has emerged as a frontline defense with nearly all institutions (99%) prioritizing it and most (86%) classifying fraud prevention within asset management as a major priority. Alongside fraud prevention, institutions identified regulatory compliance (55%) and upgrading legacy systems (54%) as additional critical areas. Yet fraud prevention remains the top focus across the board.

“Fraud has evolved into one of the most persistent threats facing both financial institutions and the broader communications ecosystem,” said Gina Perini, Chair of the Board & CEO of Somos. “Telecom fraud, in particular, undermines trust at the very core of how people and businesses connect. Addressing it requires more than technology — it takes collaboration, transparency and a shared commitment to safeguarding digital interactions. At Somos, we’re dedicated to building the trusted infrastructure that helps prevent fraud and protects the integrity of every connection.”

Taken together, the findings show the scale of the challenge and the determination to meet it. Fraud is a universal threat, but financial institutions are preparing to fight back with stronger technology, closer partnerships and a focus on restoring customer trust.

For more information and to download the full report, visit https://www.somos.com/costoftrustreport2026