BioCatch Data Reveals 76% of Italian Banks Suffer $10M+ Annual Fraud Losses as Scams Surge in Brazil

Banking leaders in Italy and Brazil are facing a sharp escalation in sophisticated fraud, with Italian institutions reporting the highest annual losses globally. As regulatory shifts like PSD3 loom and social engineering tactics evolve to include AI-generated deepfakes, financial institutions must urgently recalibrate their defense strategies to mitigate rising reimbursement liabilities and synthetic threats.

What was announced

New research involving 100 fraud management, anti-money laundering (AML), and compliance leaders at Italian banks reveals that 68% of respondents are seeing an increase in fraud losses, with 21% categorizing these rises as significant. The financial impact is substantial: 76% of surveyed organizations in Italy report losing more than $10 million to fraud annually. This figure is 25 percentage points higher than the global average and represents the highest percentage among the 17 countries included in the study.

The survey highlights specific concerns regarding the Single Euro Payments Area (SEPA). Approximately 78% of Italian banking leaders believe SEPA credit transfers will heighten fraud risk, a sentiment shared almost unanimously by C-suite executives. This concern is compounded by the upcoming PSD3 regulations, which are expected to place the liability for scam reimbursements on banks. Currently, 73% of Italian institutions are already modifying internal reimbursement policies in preparation for these changes.

In Brazil, social engineering attempts rose by 15% between the second half of 2025 and the first half of 2026. While fake store and call center scams remain dominant, "fake lawyer" scams have emerged as the third-most prevalent threat. These involve fraudsters using public court records to contact victims via WhatsApp, demanding upfront Pix payments for non-existent favorable rulings. These fraudulent sessions often last three times longer than legitimate payments, with 20% of attempts occurring while the victim is on an active call.

The companies involved

BioCatch is a specialist in behavioral biometrics and fraud prevention, currently operating under the ownership of Permira Advisers LLP. The company focuses on analyzing human behavior to distinguish between legitimate users and fraudulent actors, providing a layer of security that goes beyond traditional static credentials. By monitoring physical and cognitive digital behavior, the firm aims to identify anomalies that suggest account takeover or social engineering in real-time. The company maintains a global presence, tracking fraud trends across multiple continents to inform its intelligence reports.

Peck Advogados is a Brazilian law firm led by CEO and founder Patricia Peck. The firm operates at the intersection of law and technology, providing expertise on digital transformation, data protection, and cybersecurity. In the Brazilian market, where the rapid adoption of the Pix instant payment system has created new avenues for financial crime, the firm provides guidance on the legal implications of fraud and the emerging challenges posed by synthetic media and AI-driven deception.

What FF News has reported before

FF News has tracked the steady rise of global financial crime through several recent reports from BioCatch. On November 3, 2026, the company announced it BioCatch Launches Global Advisory Board to Combat Government Payment Fraud to assist public sectors in mitigating risk. This followed research showing that Money Mule Activity Surges 25% at US Community Banks and Credit Unions, highlighting vulnerabilities in smaller financial institutions.

Geographic specificities have also been a focus, such as when Spanish Banks Hit by 150% Surge in Fraud from Stolen Devices was reported in October. Furthermore, the shift toward mobile-centric crime was detailed in a report stating that BioCatch Report: 90% of Banking Scams Now Target Mobile Devices as Global Fraud Rises 35%, underscoring the pervasive nature of the threats facing the industry.

What this means

The findings suggest a critical inflection point for European and South American banking. In Italy, the combination of high fraud losses and the impending PSD3 liability shift puts immense pressure on bank margins. The industry is moving toward a "reimbursement by default" model, which may inadvertently encourage more aggressive social engineering if banks cannot prove gross negligence. Meanwhile, the Brazilian market serves as a warning for the global sector regarding the weaponization of public data and AI. As synthetic trust becomes a tool for criminals, the traditional reliance on voice and identity verification is failing, forcing a pivot toward behavioral signals that are harder to spoof.