09.24.24

Nearly 70% of Consumers Prioritize Fraud Protection When Picking a Bank

by: Pymnts.com

Economic impacts from fraud have forced banks and financial institutions (FIs) to shift resources away from innovation toward immediate threat mitigation, according to a new PYMNTS Intelligence report, undertaken in collaboration with NCR Voyix. The report underscores the need for banks to find a way to meet consumer demands for both innovative services and enhanced security. In 2023, the average fraud-related costs for FIs with assets exceeding $5 billion surged to $3.8 million, a 65% rise from the previous year. The increase is attributed to more sophisticated fraud tactics, with purchase return authorization fraud averaging $115,000 per incident. Notably, 47% of FIs reported dealing with account takeover fraud in the past year, while phishing attacks continue to target 73% of banking customers, leading to further security breaches. Critically, consumer expectations are shifting, with 69% prioritizing fraud protection when selecting a financial institution. Furthermore, 32% consider this the most critical factor in their decision-making as the increasing demand for streamlined onboarding processes complicates the situation. The report found that 24% of potential new account holders may be deterred if security measures are perceived as too cumbersome.

Read the full article on Pymnts.com