CFOs Confront the New Economics of Fraud

Fraud prevention requires a multi-layered defense built on an ecosystem of people, processes and technology, WEX Vice President of Global Fraud and Financial Crimes William Fitzgerald writes in a new PYMNTS eBook, “Headlines That Will Shape the Close of 2025.”

The year 2025 has been a chaotic one for chief financial officers. The same digital transformation that promises agility and growth has unleashed a new, more sophisticated wave of attacks powered by AI. Your fraud team is no longer fighting against a handful of bad actors — they’re facing an automated army launching more convincing and frequent attacks.

Research shows 80% of businesses were targeted by fraudulent practices in the last 12 months. And while the COVID-19 pandemic forced a lot of this inertia away from legacy payments systems, the rate of digital transformation has stalled since, as more than 73% of businesses have yet to automate supplier payments. This leaves corporations even more vulnerable to increasingly sophisticated attacks. When it comes to an increase of fraud on this scale, it isn’t just a matter of financial loss, but a critical competitive dynamic that threatens trust and brand reputation.

For CFOs and finance leaders looking ahead to 2026, the era of reacting to fraud after it happens is over. The new imperative is to build a proactive, multi-layered defense built on a comprehensive ecosystem of people, processes and technology.

As artificial intelligence advances, so can your approach to keep pace with it. By coupling automation, data-driven insights, AI-powered detection models and secure digital payment methods, corporations can help customers improve their bottom line and fortify their security and fraud posture. This also includes advanced tools like virtual cards, which are an unparalleled deterrent against fraud, and dynamic prompts that add multi-factor authentication for enhanced security.

However, the shift extends beyond just technology. Having a strong fraud prevention strategy also requires having an orchestrated and committed team of people on board, who can recognize and report phishing attempts and other fraudulent activities before they even happen.

In 2026, senior leaders must make it clear that everyone is responsible for preventing fraud and maintaining a strong security posture. Every team member should be empowered to recognize and respond to risk. This includes mandatory training, enforcing strong password policies and ensuring there are clear processes for multi-level approvals.

Just because faster payments can mean faster fraud, it doesn’t mean the speed of innovation needs to outpace security. As we look ahead, the most important action a leader can take is to move from a mindset of reaction to one of resilience. By embracing technologies like virtual cards, automating processes with AI-powered tools, and empowering employees as a first line of defense, financial leaders can create a more fortified system that sets the tone for a more secure and resilient 2026.