Survey: Americans Fear Identity Theft and Banking Fraud More Than Terrorism

by Joseph Walent 0

 Being a victim of fraud is indeed becoming more of a question of “when” than “if” for Americans, and being our usual level-headed selves we’ve ranked it appropriately when compared to other forms of attacks.

That’s not to say that identity fraud is scarier than death, of course; rather, it seems to reflect an acknowledgement of its relative likelihood, with concerns about digital fraud rising as more banking and other sensitive transactions are done online. And when fraud does happen, it can be disastrous not just for the customer but for the organizations affected: FICO’s survey found that of respondents who were dissatisfied with how their banks handled fraud, 25 percent closed the affected account and 12 percent closed all accounts with the bank.

Mercator Advisory Group recognizes financial institutions have improved in the response to threats of ID theft and fraud. However, we believe that many instances of its detection and remediation are not being leveraged to more closely engage with consumers. FIs have an opportunity to demonstrate added value to their customers through monitoring and analysis. Capital One has a offering in this arena called Second Look Alerts that identify transactions that are typically okay, be may be worth a quick investigation by the consumer. Providing proof of partnership with consumers helps to build trust and brand affinity.

Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group

Read the full story here

Featured Content