Nasdaq CEO: National Fraud Strategy Needed Amid Rising Losses

Nasdaq Chair Proposes National Strategy to Combat Escalating Fraud

Adena Friedman, Chair and CEO of Nasdaq, is urging the United States to acknowledge and confront fraud as a major, albeit often unacknowledged, industry. Speaking at an American Banker event in New York, Friedman unveiled a proposal for a National Fraud Strategy aimed at coordinating efforts against financial crime across a broad spectrum of entities, including banks, technology firms, telecommunications providers, and law enforcement agencies. This initiative comes at a critical juncture, as criminals are increasingly leveraging artificial intelligence to execute scams at a scale that individual institutions find challenging to counter.

Friedman delivered the keynote address at the American Banker Most Powerful Women in Banking and Finance Conference on October 20, 2026, where she was also recognized as the No. 4 most powerful woman in finance by the publication.

Her proposed framework is built upon several key principles. The first emphasizes responsible information sharing among institutions that detect fraudulent activities. The second calls for the establishment of common best practices. The third, and arguably most crucial, component involves legal safe harbors designed to protect organizations that collaborate in combating fraud.

Currently, banks and other financial firms often hesitate to share data concerning suspected criminals due to concerns over privacy and potential liability. The introduction of safe harbors would provide these institutions with legal protection, enabling them to share information and coordinate their responses.

Friedman also advocated for the implementation of joint Suspicious Activity Reports (SARs). These are official filings that financial institutions submit to regulatory authorities when they identify transactions indicative of money laundering or fraud. Under the current system, institutions typically file SARs independently. Joint filings would allow multiple entities to collectively flag the same fraudulent scheme, a critical capability when a single scam involves money moving across several banks.

The proposed strategy aims to bring together financial institutions, technology companies, telecommunications providers, and law enforcement agencies to work collaboratively.

A significant aspect of Friedman’s proposal is that it does not necessitate the creation of new regulatory bodies or mandates. Instead, she argued that the strategy should be integrated within the existing anti-money laundering framework, which is currently undergoing modernization.

The Staggering Scale of Financial Crime

The magnitude of the fraud problem is substantial. In 2025, an estimated $4.4 trillion in illicit funds was laundered globally. Fraud losses alone are projected to exceed $500 billion, with reports from Friedman’s speech citing the figure at $579 billion.

Furthermore, nine out of ten professionals working in anti-financial crime roles have reported an increase in AI-driven attacks. Friedman acknowledged that AI-enabled scams have significantly enhanced the effectiveness of criminal operations and have contributed to substantial financial losses in recent years.

Criminal networks often operate by opening accounts at one bank, laundering funds through another, and contacting victims via telecommunications networks and social platforms. Each organization involved only perceives a fraction of the overall operation, leaving a critical gap in understanding the complete picture. A national strategy, Friedman suggested, is essential to connect these disparate pieces of information.

Nasdaq’s strategic investments underscore its commitment to this area. In 2021, the company acquired Verafin, a provider of AI-powered anti-financial crime tools, for $2.75 billion. This acquisition has become a pivotal element of Nasdaq’s growth narrative, with Verafin’s technology assisting financial institutions in detecting fraud and money laundering, positioning Nasdaq firmly within the market that a national strategy would invigorate. In 2023, Nasdaq further bolstered its presence in financial crime compliance technology with the $10.5 billion acquisition of Adenza.

Potential Benefits and Challenges

For financial institutions, the proposed strategy offers the potential for relief from a persistent dilemma: the pressure to prevent fraud while simultaneously facing legal risks associated with sharing customer information. Legal safe harbors and joint SARs could alleviate this tension, empowering institutions to act on intelligence that is currently often confined within individual organizations.

The emphasis on leveraging existing anti-money laundering structures, rather than introducing new mandates, is also a key feature of Friedman’s proposal. This approach aims to streamline implementation and avoid the complexities of establishing entirely new regulatory frameworks.

The inclusion of technology and telecommunications companies presents a potential area for complexity. These firms have historically been reluctant to accept responsibility for scams originating on their platforms or networks. The legal safe harbors outlined by Friedman could serve as a crucial incentive to encourage their participation.

Friedman’s call for a national fraud strategy aligns with a similar initiative launched by the American Bankers Association and other stakeholders in October 2025, indicating a growing consensus on the need for a coordinated approach to combatting financial crime.