Fraud and Compliance
2026 Fraud Report: What’s Driving the Confidence Gap
Fraud isn’t standing still. Financial fraud is getting harder to detect, more embedded in everyday business processes, and increasingly dependent on technology and AI-driven tactics.
That’s one of the clearest messages in the Finance Leaders’ Fraud Report 2026, published by the Institute of Financial Operations & Leadership (IFOL) and sponsored by SAP Concur.
But while fraud is becoming more sophisticated, confidence in fraud prevention and financial risk management is moving in the opposite direction. Only 22% of finance leaders say they feel very well protected against fraud, down from 32% last year.
So what’s driving that confidence gap?
| Fraud Trend | Key Finding | Why It Matters |
|---|---|---|
| Confidence gap | Only 22% feel well protected (down from 32%) | Trust in fraud controls is declining |
| Frequent fraud | 19% report frequent fraud; 33% occasional | Fraud is now a regular business risk |
| Business email compromise | 45% of orgs impacted | Still the top fraud attack vector |
| Impersonation fraud | 40% report incidents | Identity-based fraud is rising |
| Deepfake fraud | 6% experienced deepfake attacks | AI-driven fraud is emerging |
| Low AI adoption | 59% not using AI in spend management | Weak automation increases exposure |
| Fraud training gaps | 29% provide no training | Employees remain underprepared |
| Financial losses | 62% saw losses in last 3 years | Fraud is already causing real impact |
Let’s take a look at some of the key insights from the report.
Get the Finance Leaders' Fraud Report 2026
Download the full report for insights into how fraud is changing, where gaps in visibility, training, and technology exist, and what finance leaders can do to strengthen controls and reduce risk.
Get the reportFraud Detection Is Becoming More Difficult
At first glance, some data points in the report suggest improvement. Fewer professionals report knowing someone affected by fraud, dropping to 66% in 2026 from 77% the year before.
At the same time, 19% of organisations also say they experience fraud frequently, and another 33% say it happens occasionally, making it a regular part of operations rather than a rare event.
Today’s fraud attacks are also becoming more sophisticated and more difficult for finance teams to detect manually. Business email compromise affects 45% of organisations, while impersonation fraud has risen to 40%. The report also highlights emerging threats, with 6% of respondents experiencing deepfake video or audio attacks for the first time.
AI Adoption in Fraud Prevention Is Lagging
While the report highlights the continued rise of advanced, AI-enabled fraud, it also shows that AI adoption in finance operations and fraud detection isn’t keeping pace.
Only 27% of organisations are using AI in spend management processes, while 59% aren’t using it at all.
That gap leaves finance teams relying on manual fraud checks or disconnected systems to detect and prevent fraudulent activity.
This is where AI has the potential to offer significant advantages. Solutions like Verify and Intelligent Audit apply AI capabilities across expense and invoice processes, helping teams catch issues earlier and reduce manual review.
Fraud Training and Leadership Gaps Increase Risk
Technology isn’t the only issue. People and processes play just as critical a role.
The report shows that 29% of organisations don’t provide fraud training at all, and another 22% only offer it occasionally. At the same time, 60% of respondents believe their manager could do more to protect the team from fraud.
Without consistent fraud awareness training, teams are less equipped to recognise suspicious activity and potential fraud risks. And without strong leadership support, even the right controls can fall short in practice.
Fraud Exposure Is Increasing Financial Risk
The report found that 62% of organisations have experienced financial losses from fraud within the last three years.
Even when financial losses are minimal, fraud incidents still create operational disruption, increase manual workload, and expose gaps in existing financial controls. As fraud becomes more frequent and more sophisticated, those impacts can escalate quickly.
How Finance Teams Can Strengthen Fraud Prevention
The confidence gap isn’t about a single issue. It’s the result of multiple factors coming together:
- Fraud that’s harder to detect
- Technology adoption that hasn’t kept pace
- Inconsistent training and support
- Increasing exposure to risk
Closing that gap takes a more connected approach.
Ongoing training, AI-powered compliance and risk tools, and better visibility into companywide spend all play a role in helping teams stay ahead.
Want a deeper look at the data and recommendations?
Download the full Finance Leaders’ Fraud Report 2026 to see how finance teams are responding and where to focus next.
Key takeaways from the Finance Leaders’ Fraud Report 2026
- Only 22% of finance leaders feel very well protected against fraud
- Business email compromise affects 45% of organisations
- 59% of organisations are not using AI in spend management
- Fraud training gaps continue to increase organisational risk
- Deepfake fraud is emerging as a new financial threat
Frequently asked questions about fraud trends in 2026
What are the biggest fraud risks facing finance teams in 2026?
The Finance Leaders’ Fraud Report 2026 highlights business email compromise, impersonation fraud, and emerging deepfake attacks as some of the fastest-growing fraud risks affecting organisations.
Why are finance leaders less confident about fraud prevention?
Many finance leaders report challenges related to limited AI adoption, manual fraud detection processes, inconsistent training, and gaps in data visibility and financial controls.
How can AI help prevent fraud?
AI-powered fraud detection tools can help finance teams identify unusual spending patterns, flag suspicious transactions, automate compliance checks, and reduce manual review workloads.
What role does employee training play in fraud prevention?
Fraud awareness training helps employees recognise suspicious activity, phishing attempts, impersonation scams, and other financial fraud risks before they escalate.
What is business email compromise?
Business email compromise (BEC) is a type of fraud where attackers impersonate trusted contacts or executives to trick employees into transferring money or sharing sensitive information.
Why is fraud detection becoming more difficult?
Fraud schemes are becoming more technology-driven and sophisticated, including the use of AI-generated deepfakes, impersonation tactics, and increasingly complex cyber fraud methods.
