Today, Bank Director, the leading information resource for directors and officers of financial institutions nationwide, released the results of its 2025 Risk Survey, sponsored by Moss Adams LLP. The results reveal cybersecurity and fraud are top of mind for bank leaders this year, as the industry grapples with rising volumes of fraud attempts and evolving threats.

According to the survey, more than three-quarters of bank CEOs, senior executives and directors who responded named cybersecurity as a top risk for their institution, and 69% said the same about fraud. Check fraud was top of mind for most respondents, with 94% reporting that their bank or its customers have been directly affected by this type of fraud over the past 18 months.

Craig Sanders, a partner at Moss Adams, believes the high incidence of check fraud may be due at least partly to greater sophistication on the part of fraudsters. "The fact that check fraud is on the rise tells me that fraudsters have gotten more technically advanced," he says.

Despite concerns about commercial real estate, particularly the office sector, most respondents say they plan to grow CRE loans in 2025; just 19% reduced CRE concentrations in the past year. A majority plan to increase commercial and industrial lending.

"With large companies such as Amazon.com and JPMorgan Chase & Co. mandating a return to in-office work, pressures on commercial real estate could ease," says Emily McCormick, vice president of editorial and research at Bank Director. "However, uncertainty lingers. Expectations that interest rates could trend downward appear to be on hold as inflation remains elevated and tariffs further muddy the economic picture."

Bank Director's 2025 Risk Survey Key Findings:

• Fighting Fraud: Most respondents focus on staff education and training to combat fraud. More than half say they maintain communication with customers about potential threats.

• Protecting the Bank From Cyberattacks: A majority report conducting a tabletop cybersecurity incident response plan over the past year, while 70% say their cybersecurity insurance premiums have increased in the last 18 months.

• Applying Stress Test Data: Nearly three-quarters say their bank conducts an annual stress test. Following the latest test, 53% say they adjusted their liquidity plan or policy.

• Regulators Focusing on Liquidity: The percentage of bank leaders who cite liquidity management among their top strategic challenges this year fell to 17%, from 32% a year ago.

• Strengthening BSA/AML Compliance: Thirty-one percent say their bank saw heightened regulatory attention on Bank Secrecy Act and anti-money laundering compliance in their latest exam, up from 20% last year.

• Diminishing Deposit Woes: Concern about deposit pricing dramatically fell off over the past year; 37% cite it as a strategic challenge over the next 18 months, compared with 64% who said the same in 2024.

Bank Director's 2025 Risk Survey provides valuable insights into cybersecurity, credit, liquidity and regulatory scrutiny. To view the full report and additional findings, please visit BankDirector.com.