Fraud pressures persist as AI adoption lags, AFP survey finds

More than three-quarters of U.S. organizations experienced attempted or actual payments fraud in 2025, underscoring the continued scale of the threat even as new tools emerge to combat it, according to the latest survey from the Association for Financial Professionals.

The 2026 AFP Payments Fraud and Control Survey, conducted among 465 treasury practitioners in January 2026, found that 76 percent of organizations encountered fraud activity last year. At the same time, adoption of artificial intelligence tools for fraud mitigation remains relatively low, with just 17 percent of respondents reporting use of AI-based solutions.

The AFP, a professional society representing treasury and finance professionals and known for administering the Certified Treasury Professional credential, conducts the survey annually to track fraud trends and mitigation strategies across U.S. businesses.

A key driver behind the rise in fraud activity is business email compromise (BEC), which affected 74 percent of organizations in 2025, marking a significant increase from prior years. BEC schemes typically involve attackers impersonating executives or vendors to trick employees into redirecting payments, and they have become increasingly sophisticated with the use of social engineering and emerging technologies.

Despite advances in fraud detection tools, traditional vulnerabilities remain entrenched. Paper checks were cited by 58 percent of respondents as the payment method most often targeted by fraud, making them the leading attack vector. Yet check usage persists: 72 percent of organizations that use checks said they plan to continue doing so, often due to vendor requirements and legacy processes.

Treasury teams on the front lines

The survey highlights the central role treasury departments play in combating fraud. Treasury teams were identified as the group most likely to detect both attempted fraud (83 percent) and successful fraud (55 percent). In addition to monitoring transactions, treasury functions are responsible for coordinating response and recovery efforts, often working with accounts payable teams, banks and vendors.

"AFP's survey demonstrates how the treasury function has solidified its role as a primary line of defense against fraud," said Tom Hunt, director of treasury practice at AFP. He emphasized the importance of integrating AI-driven tools with traditional controls to keep pace with evolving threats.

Organizations that have adopted AI report measurable benefits, including improved fraud reporting efficiency (49 percent), better detection of deepfake-related threats (45 percent) and enhanced real-time identification capabilities (43%). Still, many firms cite cost concerns, perceived immaturity of the technology and reliance on existing controls as barriers to wider adoption.

The consequences of fraud remain significant. According to the survey, 48 percent of organizations with revenue under $1 billion reported financial losses from fraud, compared with 66% of larger organizations. Smaller firms, while less frequently targeted, are often less equipped to recover funds once a breach occurs.

Industry experts say the findings reflect a broader shift in how organizations approach fraud prevention. Rather than relying on a single control, companies are increasingly adopting layered strategies that combine employee training, process discipline and technology.

"Fraud prevention today is an operating model, not a single control," said Chris Ward, head of enterprise payments at Truist, which underwrote the survey.

As payment systems grow faster and more complex, AFP's findings suggest that organizations face a dual challenge: modernizing defenses while addressing persistent vulnerabilities—especially those tied to legacy payment methods like checks.

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