Half of Companies Tap Bank Data for Fraud Detection Despite Rising Threats

Companies already possess secure access to customer bank data but aren't fully exploiting these connections for fraud detection. While nearly every business surveyed maintains permissioned bank account access, less than half deploy this capability to monitor suspicious activity in real time.

A PYMNTS Intelligence study released in August surveyed 150 senior executives from seven payment-heavy industries. The research revealed that 49% use bank connections to generate fraud alerts from account activity, despite 69% retrieving account and routing numbers through the same secure channels.

That 20-percentage-point gap represents a significant missed opportunity. Businesses have the infrastructure in place but haven't extended its application from basic payment processing to active threat monitoring.

More than half of firms — 57% — experienced an uptick in fraud attempts compared to the previous year. The rising threat level makes existing security blind spots more costly.

Customer payments arriving at businesses pose the greatest fraud exposure. 47% of respondents identified incoming payments as their highest-risk category, compared to just 19% who flagged outbound disbursements to customers.

Only 24% of companies have adjusted their fraud controls to account for real-time payment systems, leaving many vulnerable as instant settlement grows more prevalent.

The research outlined practical steps for payment teams to close security gaps:

• Expand how existing bank connections are used. Account activity data can help flag higher-risk transactions before funds transfer, turning a payment verification tool into an early warning system
• Link fraud prevention improvements to measurable cost reductions. 68% of firms reported lower fraud losses from payment modernization, while 76% cited reduced manual review workload
• Focus first on the payment types carrying the most exposure. Teams should examine verification processes for incoming payments and identify where manual checks create bottlenecks

The report recommended calibrating verification depth to match each payment's risk level rather than applying uniform controls across all transactions.

Secure bank connectivity delivers advantages that extend past security improvements. 90% of firms linked these connections to better onboarding completion rates, while 89% saw lower payment operating costs and 85% experienced fewer failed or returned payments.

Despite these operational gains, only 17% of companies rated their payment experience as excellent. The disconnect suggests room for businesses to translate technical capabilities into customer-facing improvements.

Finance leaders can track fraud losses alongside payment failure rates and manual review expenses to gauge whether security enhancements deliver compound value across multiple areas.