New FICO Survey Finds Overconfidence Could Put US Consumers at Risk From Scams
US consumers are more worried about identity theft than scams, with 1 in 4 saying they would switch banks when dissatisfied with the response to a fraud incident
FICO today released its
Digital Consumer Banking and Fraud Surveyexamining the current state of consumer financial fraud and what banks can do to help protect against the latest threats
U.S.consumers are most concerned about having their stolen identity used to open an account (28%); account takeover fraud (26%); and card fraud (22%)
Nearly one in four (28%)
U.S.consumers say they would switch banks if they are dissatisfied with how the bank responds to their fraud case
- While consumers in the older age brackets are often the target of fraud, the research suggests that globally they appear less concerned about it compared to their younger counterparts
“There’s no doubt that consumers have embraced digital first banking since the start of the pandemic, but with that, we’ve seen a rise in digital financial and payment fraud,” said
State of Fraud in the
FICO surveyed 1000 U.S. consumers to assess consumer perspectives on fraud management and customer experience, with the results showing overconfidence about their ability to spot a financial scam. Nearly half (46%) of
Half of the respondents are most concerned with card fraud or with their stolen identity being used to open an account. When it comes to fraud that worries them least, only 5% said being tricked into making a payment to a fraudster, a type of fraud that is becoming more prevalent in the
The survey reinforces the fact that banks need to strike the right balance between implementing security measures to prevent and manage fraud, without disrupting the customers’ online experience. The majority of consumers in the
Across the Globe
Globally, when 12,028 banking customers from 12 different countries were asked which types of fraud concerned them most, 31% said they were most concerned with account takeover fraud; 24% with having credit or debit card details stolen; and 22% with account opening identity theft.
Globally, almost 14% of consumers aged 55+ are not concerned about financial fraud at all, compared to only 7% of consumers aged 18-24.
Most countries cited account takeover fraud as the top concern, while the
Only 41% of survey respondents globally have reported actual or suspected fraud to their banks with
Finding the Balance
Customers’ pain points are also tied to the level of friction they have to deal with in the purchase process. Financial institutions must communicate with customers through whichever channel they prefer, often despite documented security risks. Nearly 80% of banking customers worldwide prefer to use digital channels, including text messaging, emails, bank apps, and third-party messaging services to verify payments.
Fraudsters are becoming more emboldened and their attacks more sophisticated. As almost two thirds (65%) of consumers globally, and 80% of
“It’s clear that customer experience and fraud management are closely linked. A negative fraud management experience can turn a positive consumer relationship into a confrontational one. It’s a high stakes environment for banks as customers are wanting to be impressed fast while looking for a frictionless process. FICO works closely with our banking customers to protect their customers - from monitoring for credit card fraud to communicating proactively with customers about potential issues - even if the customer doesn’t realize they need the protection,” added Behl.
For more details and insights regarding the survey results:
Download and view the
Digital Consumer Banking and Fraud Survey
- Download and view the regional eBooks
For more information on FICO fraud solutions, visit www.fico.com/identity.
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