Survey: UK Banks Must Improve Fraud Checks to Keep Customers
FICO’s latest survey also shows the need to have direct and efficient security checks to keep consumers engaged with the process
- 35 percent would switch provider if an online transaction was incorrectly declined three or four times
- 19 percent find their biggest irritation with banks is when legitimate purchases are blocked
- 63 percent would choose to receive a verification code as a text message
- 56 percent will continue to use digital banking despite in-person options being available again
Digital Consumer Banking and Fraud Survey– Global Results
Digital Consumer Banking and Fraud Survey– UKResults Ebook
One of the biggest irritations
“Our research shows the tightrope banks walk to protect consumers’ funds but also keep them engaged with the security checks that take place along the customer journey,” said
“To mitigate any losses on either side, banks must ensure their fraud systems are up to speed and reduce false positives, so they don’t delay a legitimate consumer's purchase. Consumers expect instant results when purchasing and safety measures must be streamlined, direct, and effective.”
Consumers Overconfident About Scams
The most common concerns highlighted in the consumer research were cases when fraudsters would steal identities to open a financial account and when fraudsters use stolen personal information to take control of consumers’ accounts. Both cases were selected by 26 percent of respondents.
Respondents were not as worried about being tricked into sending payments to fraudsters, also known as authorized push payments fraud. Only 6 percent were concerned by this, which reveals a potential need for education on the subject, as £355.3 million was lost to these scams in the first half of 2021.
“The confidence consumers have in their own ability to spot and avoid real-time payment scams is misplaced. While it is good to learn that they are aware of these cases of fraud, the level of criminal sophistication does not appear to be appreciated at the moment,” added Cox.
“This presents a tricky hurdle for banks. Do they simply push more educational messages and security measures onto their customers? Our survey reveals this may not be the best approach.”
FICO surveyed 1,000
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