Security Staff Acquisition & Development, Identity

Banking customers are overwhelmed by fraud, but trust their financial institutions

According to results of a new survey, financial customers are “too complacent about risk” posed by fraud.  (Photo by John Moore/Getty Images)

An over abundance of confidence among customers can pose significant risk for the financial firms that seek to mitigate fraud.

According to FICO’s recent 2022 Digital Consumer Banking and Fraud Survey, released this week, financial customers are “too complacent about the risk certain fraudsters pose, with only 5% worrying about real-time payments fraud, and many unwilling to accept new fraud management measures,” according to a release on the report.

This comes as bad actors take advantage of widespread adoption of digital first banking amid the pandemic. According to the FICO study, almost half (46%) of U.S. financial customers say that they have been the victims of fraud recently, and nearly one in five (19%) have suffered account takeover fraud scams. To that end, half of financial respondents to the FICO survey say that they are “concerned with card fraud or with their stolen identity being used to open an account.”

Despite the growing cyberthreats and pockets of concern, nearly three-quarters (72%) of U.S. financial customers (72%) believe “their banks do enough to keep their money safe.” However, 16% believe banks aren’t doing enough, according to the FICO study. And, nearly three out of 10 U.S. consumers say they would change banks if they feel their fraud incident was poorly dealt with, per the FICO findings.

“Even if consumers are not overly worried, financial institutions still need to be on their behalf. Organizations will need to continue to adapt and evolve to fight existing and emerging fraud threats,” said Nikhil Behl, chief marketing officer at FICO. “At the same time, they need to carefully balance fraud management with sustaining customer trust, and delivering frictionless digital and in-person customer experiences.”

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