Fraud: How Are Fintech Partnerships Fighting Back?

How is fraud affecting the fintech landscape?

Fintech is susceptible to different types of fraud due to the intricate and digital-first approach it has. 

Authorised fraud refers to when the account holder is deceived, and sends money to a payee acting under disingenuous circumstances.

Unauthorised fraud describes the process whereby the account holder has not provided authorisation for a payment to proceed. The transaction is carried out by a third party. 

Statistics: year on year increase 

An increase in identity fraud has seen more collaborations between names such as Nasdaq Verafin and BioCatch in order to provide a global solution.

A report from UK Finance states that in 2024, the UK lost approximately £1.6bn to fraud. 

It further reports that there were 3.31 million confirmed cases of fraud, a rise from 2023 by 12%. 

Early analysis of data from 2025 show a rise of fraudulent authorisations of card payments in the UK by 16%, according to a report by BioCatch. 

BioCatch also published its report on digital banking trends in the US, suggesting that the currency of choice for fraudsters is currently blockchain-based stablecoins.