Alloy has partnered with Plaid to equip financial institutions with more advanced digital tools to combat the rising wave of AI-driven fraud. As cybercriminals increasingly leverage artificial intelligence to scale attacks, this collaboration aims to help organizations strengthen identity verification, reduce fraud losses, and streamline compliance processes.
Notably, fraud losses have surged by 9.2% over the past two years, largely fueled by AI-powered scams. As a result, financial institutions face mounting pressure to enhance their fraud detection capabilities. Through this partnership, Alloy enables its clients to build a more comprehensive and data-rich view of customer identities right from the onboarding stage. Consequently, organizations can detect threats earlier while also automating critical KYC (Know Your Customer), KYB (Know Your Business), and AML (Anti-Money Laundering) workflows, reducing reliance on manual reviews.
“AI is rapidly reshaping the risk landscape for financial institutions, and the best way to keep up is to embrace AI to fight it,” said Adam Yoxtheimer, head of partnerships at Plaid. “Companies like Alloy make it easy for banks to adapt and embed AI-powered tools and signals to see outside the walls of their institution. Together, we’ll help more institutions test and deploy the solutions needed to better understand risk and defend against fraud.”
However, industry data highlights a critical gap. According to Alloy’s 2026 State of Fraud Report, only 24% of financial institutions and fintechs detect fraud during the onboarding phase. Therefore, most organizations identify fraudulent activity only after attackers have already infiltrated systems and caused financial damage. To address this issue, Alloy emphasizes the importance of building a layered and continuously monitored identity framework rather than relying on a single data source.
Furthermore, the partnership integrates Plaid Protect into Alloy’s platform, combining machine learning models with cross-institutional intelligence to detect fraud across the entire customer lifecycle. This integration allows mutual clients to access network-level fraud insights directly within Alloy workflows. In addition, institutions can leverage Plaid’s identity and asset verification tools to create more secure and seamless onboarding experiences.
At the same time, Alloy enhances flexibility for its users by allowing them to test and deploy multiple fraud and compliance solutions in parallel. Since Plaid is now part of Alloy’s extensive ecosystem of over 250 partner solutions, clients can easily configure, experiment, and optimize different combinations without the need for complex integrations. This approach empowers organizations to adapt quickly as fraud tactics evolve.
“Alloy was built on the idea that there is no single silver bullet for fraud or compliance,” said Brian Bender, General Manager, Partner Solutions at Alloy. “Our clients need the freedom to layer, test, and evolve their data strategies as threats change. Deepening our partnership with Plaid is a natural extension of that vision.”
Ultimately, this collaboration reflects a broader shift in the financial industry toward proactive and intelligence-driven fraud prevention. By combining Alloy’s orchestration capabilities with Plaid’s data network and AI-powered insights, the partnership enables institutions to stay ahead of increasingly sophisticated threats while delivering safer and more resilient digital experiences.
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