2026 Fraud Report: What’s Driving the Confidence Gap

Fraud isn’t standing still. It’s getting harder to detect, more embedded in everyday processes, and more dependent on technology.

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 combating it 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?

Let’s take a look at some of the key insights from the report.

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Fraud is becoming harder to see

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 attacks are also more sophisticated. 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.

The AI gap is widening

While the report highlights the continued rise of advanced, technology-driven fraud, it also shows that AI adoption in finance operations 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 teams relying on manual checks or disconnected systems to detect and prevent fraud.

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.

Training and leadership aren’t keeping up

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 training, teams are less equipped to recognise suspicious activity. And without strong leadership support, even the right controls can fall short in practice.

More exposure, more impact

The report found that 62% of organisations have experienced financial losses from fraud within the last three years.

Even when losses are minimal, they still create disruption, increase workload, and expose gaps in existing processes. As fraud becomes more frequent and more sophisticated, those impacts can escalate quickly.

Closing the gap

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.