Consumers Urge Banks to Combat Fraud with AI-Powered Solutions

As artificial intelligence becomes more advanced, consumer anxiety over AI-powered scams is soaring. According to the State of Scams report by fraud prevention platform Alloy, 85% of U.S. consumers believe AI has made scams harder to detect — with many expecting banks to counter the threat using the same technology.
 
 
 
The survey, conducted by The Harris Poll among 2,000 U.S. adults, highlights that AI-driven bank impersonation scams are the most common (28%), followed by voice-cloning calls (21%) and synthetic identity fraud (18%). Alarmingly, 62% of respondents said they or someone they know had been targeted, and one in five lost over $5,000 to such frauds.

Yet, while AI has empowered fraudsters, consumers see it as part of the solution. Nearly all respondents (97%) said fraud prevention and security are their top priorities when choosing a bank, and two-thirds (66%) prefer institutions that use AI-based protection.

“Alloy’s data confirms what we’re witnessing — AI hasn’t made fraudsters smarter, just faster. “Consumers now expect banks to use AI with equal force to safeguard their identities.”

The findings underscore an urgent need for AI-driven trust and defense frameworks across the financial ecosystem.