Payments Fraud Surges in US as Firms Struggle to Adopt AI Defenses

New data from the Association for Financial Professionals reveals that payments fraud reached a disturbing threshold in 2025, affecting more than three-quarters of U.S. organizations. Despite the rising threat, the industry’s response has been hampered by a reluctance to adopt emerging technologies, with artificial intelligence (AI) remaining largely underutilized in the fight against financial crime.

Background and Context

The 2026 AFP Payments Fraud and Control Survey Report, underwritten by Truist, illustrates a corporate landscape under siege. As fraud tactics evolve—ranging from deepfakes to sophisticated social engineering—the financial mechanisms designed to stop them are often lagging. The report highlights that while threats are universal across sectors, the defensive strategies employed by many firms remain rooted in legacy systems, creating a critical vulnerability in the financial ecosystem.

Key Figures and Entities

The survey identifies corporate treasury departments as the primary line of defense, with 83% of respondents citing treasury as the unit most likely to discover attempted fraud. According to Tom Hunt, CTP and Director of Treasury Practice at AFP, the function has solidified its role as a protector, but it must evolve. "Integrating AI-powered technologies with traditional controls will ensure the profession stays ahead of evolving fraud tactics," Hunt stated. Despite this endorsement, the data shows a disconnect between awareness and action; only 17% of organizations currently leverage AI for mitigation.

Legal and Financial Mechanisms

The persistence of the paper check stands out as a significant anomaly in the digital age. Although checks remain the most targeted payment method—implicated in 58% of fraud incidents—72% of organizations plan to continue using them. This reliance is driven largely by external pressure, with 68% of firms citing vendor requirements as the primary reason for maintaining check usage. Meanwhile, Business Email Compromise (BEC) has surged, affecting 74% of organizations in 2025, demonstrating how attackers exploit the human element of financial transactions.

International Implications and Policy Response

The slow adoption of AI, despite clear evidence of its efficacy, points to a systemic risk facing the broader economy. Organizations using AI report significant improvements in detecting deepfakes (45%) and real-time identification (43%), yet barriers such as cost and perceived technological immaturity stifle implementation. This hesitation leaves a gap that criminals continue to exploit, resulting in significant financial losses that are often unrecoverable. The findings suggest a pressing need for a shift in corporate policy, moving from reactive measures to proactive, technology-driven security frameworks.

Sources

This report is based on the 2026 AFP Payments Fraud and Control Survey Report published by the Association for Financial Professionals and underwritten by Truist.