2025 Risk Survey: Cybersecurity, Fraud at the Forefront 

Cybersecurity and fraud are top of mind for bank leaders this year, as the industry grapples with rising volumes of fraud attempts and evolving threats.

Eighty-four percent of the bank CEOs, senior executives and directors responding to Bank Director’s 2025 Risk Survey, sponsored by Moss Adams, name cybersecurity as a top risk for their institution, and 69% say the same of fraud. The survey was conducted in January.

Almost all respondents (94%) say that their bank or its customers have been directly affected by check fraud over the past 18 months. Most report experiencing elder financial abuse (70%) or digital payments fraud (61%).

Fraud involving artificial intelligence or deepfake media was much less common (15%). Craig Sanders, a partner with Moss Adams, believes that could increase in the years to come with the widespread, cheap availability of generative AI capabilities. AI could already be a factor in more common types of fraud, such as elderly abuse, where scammers can mimic a loved one’s voice to get them to send money.

Worries about more traditional risks, such as asset quality, appear less pervasive. In spite of concerns about commercial real estate, particularly the office sector, 72% of respondents say they plan to grow CRE loans in 2025; just 19% reduced CRE concentrations in the past year. A majority (68%) plan to increase commercial and industrial lending.

But continued high interest rates continue to challenge financial institutions. “We identified certain credits which we anticipate marginal or insufficient cash flow due to macroeconomic conditions,” wrote the CEO of a small midwestern bank. “While short-term rates have declined, long-term rates continue to climb.”

Fighting Fraud
Large majorities say their bank has implemented ongoing staff education (86%) and improved training (82%) to address fraud in 2024; 71% regularly communicate to customers about scams and threats. Smaller percentages say they have improved internal controls (42%) or implemented specific customer education on AI fraud and deepfake media (30%).

Protecting the Bank From Cyberattacks
A majority say their institution conducted a tabletop exercise of its cybersecurity incident response plan over the prior 12 months. Seventy percent say their cybersecurity insurance premiums have increased over the past 18 months.

Applying Stress Test Data
Almost three-quarters say their bank performs an annual stress test. As a result of their latest stress test, 53% say they adjusted their liquidity plan or policy, 44% adjusted their asset/liability management strategy and 39% adjusted their capital plan or policy.

Regulators Focusing on Liquidity
The percentage of bank leaders who cite liquidity management among their top strategic challenges this year fell to 17%, from 32% a year ago. Liquidity remains a key focus for regulators, with 62% naming it as an area of heightened attention on their last exam.

Strengthening BSA/AML Compliance
Thirty-one percent say their bank saw heightened regulatory attention on Bank Secrecy Act and anti-money laundering compliance in their latest exam, up from 20% last year. Over the past 18 months, 46% say their bank has invested in technology to boost its BSA/AML compliance function, and 41% added staff in that area. Forty-two percent improved training for frontline employees.

Diminishing Deposit Woes
Concern about deposit pricing dramatically fell off over the past year; 37% cite it as a strategic challenge over the next 18 months, compared with 64% who said the same in 2024. Most respondents expect core deposits to moderately increase (56%) or remain stable (32%) in 2025.

To view the high-level findings, click here.

Bank Services members can click below to access the complete results, broken out by asset category and other relevant attributes. To find out how your bank can gain access to this exclusive report, contact [email protected].