Fraud impact study

in the bank user 2023

In an increasingly digitized world, financial security has become a crucial pillar for consumers and financial institutions. This analysis is based on a study covering the responses of users end users of financial services in 16 countries 16 countries in the Americas and Spain. The report seeks to decipher the attitudes, concerns and experiences of different generations regarding the selection of financial services, the prevalence of fraud and responses to it.

With a focus on innovation and continuous improvement, this summary sheds light on critical opportunities to elevate fraud prevention practices. We invite you to review these findings to better understand the current landscape and contribute to a safer financial future.

Read on for a summary of this study.

Click on the button to receive a copy of the complete study in your corporate mailbox. 

Download report

Respondent profile

%

Generation X

%

Millenials

%

Generation Z

Decision factors

Importance when choosing a financial institution

Safety and reliability were the aspects most valued by the participants.

This result reflects the importance that users attach to the protection of their data and trust in products.

37,4%

Reliability and safety

95,2%

They rely on traditional banking

The high level of trust users place in traditional banking traditional banking. This is an advantage that should be capitalized on to optimize products and services.

However, there is a growing adoption of digital banking, evidencing an increase in the use of online financial services.

Fraud impact by generations, typologies, fraud alerts and fraudster preferences.

29 out of every 100 users face fraud, an alarming figure that erodes customer confidence and satisfaction, while affecting the company's image.

Fraud is one of the biggest value destroyers for financial institutions.

29%

Affected by fraud incidents

Generation X has a higher rate of fraud compared to Millennials, a possible consequence of having less experience using technology and owning more assets, which could make them a more attractive target for fraudsters.

  • Generation X 55% 55%
  • Millenials 36% 36%
  • Generation Z 6% 6%
  • Baby Boomers 3% 3%

Most frequent types of fraud

Credit card fraud is the most common type of fraud and continues to have a high share of fraud figures. On the other hand, digital fraud is experiencing an increase due to the rise of online transactions, payments and instant transfers.

It is important that fraud prevention is carried out in real time and addresses transactional behavior, connection and device analysis.

  • Credit/debit card 78.7% 78.7%
  • Digital banking 11% 11%
  • Impersonation 10.2% 10.2%
  • Web 7.1% 7.1%
  • Offices 3.1% 3.1%

Fraud alerts

It is worrying that only 23.4% of confirmed frauds are 23.4% of confirmed frauds are identified by the fraud prevention systems of financial institutions.. This detection gap highlights a critical need to adjust and optimize preventive models.

It is imperative that banks invest in advanced technologies and tools to ensure effective, real-time fraud detection.

23,4%

Preferences of fraudsters

48,3%

Credit/debit card purchases through the Internet

On 52,3% of frauds related to online purchases and transfers are executed using social engineering techniques. by means of social engineering techniquessuch as phishing (spear phishing, angler phishing) and its variants: vishing, smishing, whatsapphising and pharming.

Reimbursement rates

The 53.9% of fraud cases are reimbursed in less than one month, representing an immediateThe rapid outflow of funds can have a negative impact on the institution's liquidity and perceived soundness, which is crucial for assessing its sustainability. This rapid outflow of funds can negatively influence the institution's liquidity and perception of soundness, which is crucial for assessing the sustainability of its operations in the short term.

On the other hand, when considering total refunds 86.8% of cases are resolved, suggesting a strategy focused on regaining client confidence. While this is positive in terms of customer retention and loyalty, the entity must carefully balance this approach with the financial impact it entails.

 

53,9%

Reimbursed fraud cases

in less than a month

Information and education

Although 69.8% of 69.8% of users receive continuous information about risks and fraud prevention, the effectiveness of these information strategies is questionable.the effectiveness of these information strategies is questionable. This scenario highlights the urgent need to review and strengthen current awareness and prevention measures in financial institutions.

It is paradoxical that 79,1% of those surveyed point to e-mail as the medium through which they receive information on risks and prevention, especially when this channel is also preferred by criminals to launch phishing attacks.

In summary, it is crucial to recognize that email is no longer a safe option for educating customers. Exploring alternative options will enhance the effectiveness of the anti-fraud education program and protect users from potential deception.

Download report

Enter your corporate email address in the form to receive a copy of the full report.