AI fraud drives banks toward biometric identity defenses New survey data from KPMG shows a majority of banking executives preparing for AI to cause major disruptions to established business models. The 2026 Banking Technology Survey says 80 percent of respondents anticipate “significant shifts” over the next three-to-five years, and are making adjustments accordingly. “What we’re seeing across the banking sector is a convergence of priorities – AI, payments modernization, cybersecurity, and tech-driven M&A are no longer separate agendas,” says Peter Torrente, who leads KPMG’s U.S. Banking Sector activity, in a release. “That shift exposes the challenge to keep pace across technology, risk, and growth simultaneously.” Headline numbers show a cascade effect: 76 percent of banking executives say they have seen an increase in the number of cybersecurity attacks on their banks in the last year. In response, 92 percent are increasing their budgets to address the risk. And 84 percent are increasing cybersecurity investment specifically to address risks introduced by AI. Operational efficiency and automation is receiving the most investment in the next 12 months, but security and fraud prevention is a close second. Among top threats are AI-introduced vulnerabilities in code, deepfakes and securing agentic technologies. Eighty percent of banks are implementing regular audits to ensure data security, privacy and compliance. Notably, uptake in adoption of biometric tools is set to increase; 32 percent of banking leaders say they are already using AI-enabled biometrics to secure payments and access management – but 72 percent plan to integrate the technology over the next three years. Defense tools must evolve at speed of fraud An article from J.P.Morgan dives into fraud in the age of AI. Insights from authors Vincent Meluzio from J.P. Morgan Payments and Douglas Wilbert from Accenture are consistent with the larger industry view: “fraud risk is on