Cybersecurity and fraud are the top concerns for bank leaders this year as financial scams become increasingly sophisticated.

Fraud and cyber threats at the forefront

More than 75% of bank chief executives, senior executives and directors identified cybersecurity as their institution’s primary risk, with 69% citing fraud as a critical issue, according to financial services consultancy firm Bank Director‘s 2025 Risk Survey, released today.

The survey was conducted in January and included data from 269 independent directors, CEOs, chief risk officers and other senior executives from U.S.-based banks with assets less than $100 billion, according to the report.

Check fraud emerged as a particular concern, affecting 94% of banks over the past 18 months, according to the report.

“The rise in check fraud suggests a greater level of technical sophistication among fraudsters,” said Craig Sanders, partner at accounting firm Moss Adams, which sponsored the report.

In response, most banks are focusing on staff education, customer communication and enhanced fraud detection measures, he said.

Key findings in the report include:

• Fraud prevention: Banks prioritize staff training and customer education to combat growing fraud threats.
• CRE and lending trends: Despite commercial real estate (CRE) concerns, most banks plan to expand CRE and commercial lending in 2025.
• Regulatory and liquidity shifts: Focus on anti-money laundering (AML) compliance has increased (31% vs. 20% in 2024), while liquidity concerns dropped from 32% to 17%.
• Cybersecurity investments: Over 70% report rising cyber insurance costs, and most conducted cyber incident response planning last year.

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