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Rising Fraud Sophistication, Security Tech Developments Examined In New Report

January 24, 2026
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Juniper Research‘s latest report, extensively covering fraud tactics and security tech developments, released this month, offers a pragmatic assessment for industry leaders. Authored by Analyst Thomas Wilson, the study cuts through the noise by evaluating 15 key technologies using a proprietary framework that distinguishes high-performing innovations (“Above the Line”) from those lagging behind (“Below the Line”).

Juniper Research explained that this so-called approach emphasizes current effectiveness, scalability, and strategic value, helping banks, fintech firms, and payment providers prioritize investments amid rising fraud sophistication and regulatory pressures.

The report spotlights three standout technologies poised to transform fraud prevention and security over the next year: civic identity applications, tokenization, and artificial intelligence applications in fraud detection.

These were selected from a broader list including 3DS2 protocols, anti-money laundering systems, behavioral biometrics, chargeback tools, digital travel credentials, facial and fingerprint scanning, graph neural networks, know-your-customer platforms, multi-factor authentication, post-quantum cryptography, and APIs.

Civic identity apps, in particular, are forecasted to see rapid adoption, enabling individuals to manage government-issued digital IDs more efficiently.

This shift promises smoother user onboarding processes and greater personal control over data, evolving into a mainstream solution within 12 months.

Drawing from successful implementations like Australia’s myID app, the technology aligns with upcoming regulations such as the European Union’s eIDAS 2.0, which will require standardized digital identity wallets by the end of 2026.

Tokenization emerges as another game-changer, especially in developed markets.

By replacing sensitive data with unique identifiers, it accelerates transaction settlements, cuts operational expenses, and eases compliance with standards like PCI DSS.

Its primary benefit lies in curbing fraud incidents, making it an essential tool for enhancing payment ecosystem efficiency.

Meanwhile, AI in fraud and security is categorized in the “later-stage growth” phase, where it excels through automated processes, dynamic risk assessments, and responsive defenses.

These capabilities are expected to significantly reduce financial losses by adapting to emerging threats in real-time, positioning AI as a cornerstone for innovative anti-fraud strategies.

Beyond these frontrunners, the report addresses broader challenges, such as escalating attack vectors and the need for adaptive systems.

It underscores the importance of integrating these technologies to combat sophisticated scams, money laundering, and identity theft.

Wilson emphasizes that vendors should urgently review their customer verification, onboarding, and authentication mechanisms to ensure compatibility with frameworks like the EU Digital Identity.

Failure to adapt could result in restricted market access and heightened vulnerabilities. As fintech continues to innovate, the report‘s focus on practical, momentum-driven technologies offers a roadmap for building resilient systems.

For decision-makers in banking and payments, embracing these advancements is not just strategic—it’s essential to safeguarding assets and maintaining trust in an increasingly digital environment.

With regulations tightening and fraudsters evolving their tactics, 2026 marks a pivotal year for proactive security measures.





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Tags: DevelopmentsExaminedFraudReportRisingSecuritySophisticationTech
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