Casap First-Party Fraud Data Warns Losses Are Expected to Climb in 2026, Agentic AI Can Bridge the Gap

Casap's What's Going on in Fraud report, created in partnership with Cornerstone Advisors, reveals 75% of bank executives see agentic AI as a viable path forward for fraud detection

SAN FRANCISCO, April 30, 2026 /PRNewswire/ -- Casap, the agentic AI platform automating dispute resolution and first-party fraud prevention for financial institutions, today released its What's Going on in Fraud 2026 report in partnership with Cornerstone Advisors. Based on a survey of more than 400 bank and credit union executives across the U.S., the report highlights the increasing complexities of first-party fraud, what drives consumers to commit it, and why current tools and processes are falling short.

First-party fraud now accounts for 36% of all reported fraud in 2024, up from just 15% the year prior. Unlike traditional third-party fraud perpetrated by outside bad actors, it bypasses conventional security systems entirely—because it's being committed by real account holders, using their own names. It doesn't show up at login or transaction authorization. It surfaces weeks later, in dispute operations, where teams were never designed to carry that load.

First-Party Fraud Is Outpacing the Tools and Teams Built to Stop It

Nearly half of all financial institutions surveyed saw fraud-related losses increase in 2025 compared to 2024, and two-thirds expect losses to climb again in 2026. Concern about fraud among bank and credit union executives has intensified, with consumer-related fraud cited as a top concern by 46% of institutions heading into 2026, up from 33% in 2024.

When asked what percentage of false claims their current tools correctly identify, nearly half of bankers said they either don't know or don't track the number at all, and another 25% said the figure is less than 20%. Underlying the detection challenge is the inherent ambiguity of first-party fraud as suspicious disputes can stem from deliberate abuse, customer confusion, or financial hardship, making it difficult for today's tools to tell them apart.

Banks See AI's Potential but Don't Know Where to Start

Despite the mounting pressure, the report reveals a significant gap between institutions' appetite for AI and their willingness to act on it. While 75% of bank executives see agentic AI as a viable path forward for early fraud detection and cross-case pattern recognition, 42% said their organizations are uncomfortable deploying it because they have a limited understanding of how it can detect and mitigate first-party fraud at scale.

"Fraud losses are climbing, teams are stretched, and trust has never mattered more, especially now that switching banks is just a few taps away. The tools most institutions rely on simply weren't built for what they're up against today," said Shanthi Shanmugam, CEO and Co-founder of Casap. "We've hit a turning point. Most bankers I talk to now see agentic AI as the answer. The ones who actually act on it are the ones who'll get ahead."

Cornerstone Advisors' Chief Research Officer Ron Shevlin adds, "When more than a third of Americans say they've committed or know someone who has committed first-party fraud, that's not a technology failure. It's a fundamental shift in consumer behavior that demands a fundamentally different response."

The New First-Party Fraud Playbook

As fraud-related losses continue to climb, Casap and Cornerstone Advisors' research shows that financial institutions need to fundamentally redesign dispute operations, from intake through resolution. The institutions that act now, while the gap between current capabilities and current threat levels is still closeable, will be in a structurally different position than those that wait.

To read the 2026 What's Going on in Fraud Report in full, visit here.

Research Methodology
The data cited in this study comes from a survey fielded by Cornerstone Advisors in December 2025. The sample included 416 respondents, 46% from banks, 54% from credit unions, 89% of whom work for financial institutions (FIs) in the $250 million to $50 billion asset range. More than 7 in 10 respondents are C-level executives—including 30% who are CEOs—with the rest coming from the ranks of senior vice presidents and vice presidents.

About Casap
Casap is an AI-native platform that helps banks, credit unions, and fintechs resolve disputes and eliminate first-party fraud. AI agents handle the full dispute lifecycle from intake through chargeback filing, while Casap's proprietary fraud score flags suspicious claims before they become losses. Customers are seeing 51%+ reductions in fraud losses with positive ROI in weeks. Backed by Emergence, Lightspeed, and Primary ($33.5M raised), Casap is the first company to systematically solve first-party fraud at scale. The company was founded by Shanthi Shanmugam (ex-Robinhood, Inc. Female Founders 500) and Saisi Peters (ex-Chime) and is headquartered in San Francisco. Learn more at casaphq.com.

About Cornerstone Advisors
For over 20 years, Cornerstone Advisors has delivered gritty insights, bold strategies, and data-driven solutions to build smarter banks, credit unions, and fintechs. From technology systems selection and implementation to contract negotiations, performance improvement, vendor management, strategic planning, and merger and acquisition services, Cornerstone combines expertise with research and proprietary data to help financial institutions thrive in today's challenging environment.

SOURCE Casap