European Financial Firms Reported Fraud Struggles
New research shows fragmented systems and data silos hinder fraud detection across the European financial sector.
Updated on Sept. 28, 2026 in Financial Crime
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A report from Sumsub revealed that only 9% of European financial institutions operate an integrated platform for both fraud and compliance. Disconnected systems and manual review requirements currently leave institutions vulnerable to evolving financial crimes.
Why it matters
The EU Instant Payments Regulation mandates that euro transfers complete within ten seconds, leaving little time for manual verification. Data silos between existing tools currently prevent firms from identifying fraudulent activity in real time.
Only 9% of financial institutions run integrated fraud and compliance platforms, while 32% identify slow investigations as their primary operational weakness. Executives currently rank reputational harm as their top concern, ahead of regulatory penalties.
The players
Sumsub
This is a global company that provides verification and compliance software solutions for various financial institutions.
The details
Institutions struggle with manual review processes, with nearly half of firms reporting that at least a quarter of fraud alerts require human intervention. Meanwhile, regional discrepancies persist, as firms in France and Benelux frequently catch fraud only after payment settlement.
Timeline
Sumsub published The State of European Financial Services report in 2026.
Financial firms expect to increase their technology budgets over the next 12 months.
Institutions plan to prioritize earlier fraud detection over the next 24 months.
Legal Context
The study highlights how the technical demands of the EU Instant Payments Regulation have created a significant gap in fraud prevention capabilities. Firms are now rushing to modernize infrastructure to meet mandatory ten-second transfer windows while contending with legacy compliance systems.
Customers may experience slower transaction processing as firms implement more rigorous but time-consuming manual fraud reviews for suspicious activity. However, increased investment in real-time detection platforms aims to eventually reduce the frequency of unauthorized payments and identity theft.
The takeaway
Financial institutions must transition away from fragmented legacy tools to survive in an era of instant digital payments. Investing in real-time integrated compliance platforms is now an operational necessity to avoid both reputational damage and regulatory scrutiny.
What happens next
Financial institutions are expected to increase fraud prevention technology budgets over the next 12 months, followed by a sector-wide push for earlier detection capabilities over the next 24 months.
Further reading
For additional context on how institutions are responding to emerging threats, explore the latest Financial Crime analysis.
More information
You can access the full findings in the download Sumsub European financial services report.
Live Poll
Do you trust your bank to protect your money from increasingly rapid digital fraud attempts?
