Are U.S. Consumers Satisfied with Banks and Their Protective Measures?
- Are consumers impressed with anti-fraud protections?
- A high percentage of customers are pleased with their banks
- Consumers reported losing more than $12.5 billion to fraud in 2024
One facet of fraud that gets overlooked is the consumer satisfaction factor. Anytime fraud is not detected, there is a victim -- whether it's an individual or a business. When it comes to individuals, fraud is especially damaging; half of Americans have less that $500 in savings and 40% keep less than $500 in their checking accounts, according to Yahoo.
Customer satisfaction appears to be positive from consumers, according to a new national survey from the ABA, conducted on their behalf by Morning Consult.
Nine in ten Americans with a bank account (89%) say they are "very satisfied" or "satisfied" with their primary bank and 93% rate their bank's customer service as "excellent," "very good" or "good."
(Source: Morning Consult on Behalf of ABA)
But, how about their banks' abilities to protect them and their funds?
Consumers Recognize and Appreciate Significant Fraud Protection Efforts
Most notably for our particular focus, the survey revealed that consumers are very satisfied with their banks' efforts to protect them from fraud and scams, with nearly 9 in 10 bank customers (86%) saying their bank takes proactive steps to protect them from fraud and scams. Nearly three-quarters (74%) believe their bank does more than businesses in other industries to protect them.
ABA President and CEO Rob Nichols explains:
"No industry is doing more to fight fraud and protect their customers than ours, and consumers clearly recognize and appreciate banks' efforts," said Nichols. "America's banks continue to make major investments to detect and combat fraud, and we're especially pleased to see so many banks participating in ABA's award-winning consumer education campaigns that empower consumers to spot scams before they can do harm."
However, while 86% are satisfied, this does not mean banks can pat themselves on the back just yet.
Fraud Losses in the US
According to the FTC, "consumers reported losing more than $12.5 billion to fraud in 2024, which represents a 25% increase over the prior year." But, this is just represents the consumer side. We need to remember that banks often take the losses and reimburse their customers -- even if it is the fault of the consumer. We also can't forget about the fraud losses to businesses; they are often targeted by fraudsters as they typically have higher amounts within their banking accounts.
While many banks have taken significant steps in deploying new technologies to fight fraud -- particularly for checks fraud detection -- more investments in solutions are still needed. Banks need to continue to diversify their fraud detection methodologies, deploying specific technologies for specific payments.
This is the strategy being utilized by the best-performing banks, layering transactional/behavioral analytics, image forensic AI, consortium data, rules engine, and dark web/Telegram monitoring -- helping them achieve over 95% detection rates.
While consumers as a whole are satisfied, banks and their #fraudfighters should not be satisfied as long as even one account holder is a victim.
