Arion Bank’s re­port on fraud and threats in fin­an­cial ser­vices

In recent years, there has been a significant increase in online fraud and it now represents one of the major security challenges faced by Icelandic consumers. The majority of adults in Iceland have undoubtedly encountered attempts at online fraud, whether in the form of e-mails, text messages, phone calls, or other methods. A report produced by the Central Bank of Iceland on the scope of fraud in payment services indicates that total fraud in 2024 amounted to around ISK 1 billion, representing a considerable increase from previous years.

Arion Bank has compiled a report on fraud and threats in financial services in order to promote greater transparency and raise awareness of how fraud and threats are evolving. The report highlights the challenges facing the Bank and the wider financial system. Its purpose is to provide an insight into how online fraud and cyber threats have developed in recent years, particularly in 2025.

Despite the rapid evolution of threats, Arion Bank has achieved strong results in the fight against online fraud and has significantly reduced customer losses. Since 2023, losses from online fraud have decreased each year, and excellent results were achieved in 2025 when 98% of all attempted breaches of the online bank and the Bank’s app were stopped. This success is built on a combination of proactive fraud analytics, robust education initiatives, and the effective response of Arion employees.

Online fraud attempts are becoming increasingly complex, personalized, and fast moving. Fraudsters use diverse channels (e.g., text messages, e-mail, phone calls, and social media) and rapidly adapt their methods to user behaviour. This calls for continuous reassessment of defences and alert systems, as well as improved customer education, knowledge, and the capacity to respond appropriately.

The report also discusses an increase in cases related to insurance fraud and a rise in incidents where threatening or inappropriate behaviour by customers creates insecurity at Arion branches.