Fraud in Financial Services: Consumer Data and Statistics

Consumers lost nearly $8.8 billion to scams in 2022 — a more than 30% increase from 2021 – and need a trusted partner to help keep their money and data safe. In fact, 84% of consumers expect their financial provider to proactively alert them when something looks suspicious according to MX’s research.

Here’s a compilation of data and statistics from MX’s research related to how consumers confront fraud today and what they expect from financial services providers.

In this post, you’ll find data and graphics related to: 

• How Consumers React to Fraud Today
• What Consumers Expect From Financial Providers
• Security Features Consumers Want

How Consumers React to Fraud Today

• 72% of consumers agree fraud is one of their biggest concerns. (What Influences Where Consumers Choose to Bank, 2023)

• 28% of consumers have been a victim of fraudulent transactions on a financial account in the past 2 years. (What Influences Where Consumers Choose to Bank, 2023)

• For consumers who have been the victim of fraudulent transactions in the past 2 years, the majority (52%) say their financial provider proactively alerted them to a suspicious transaction. Another 37% noticed it in their transaction history while 7% were unaware of a fraudulent charge until they received their statement. (What Influences Where Consumers Choose to Bank, 2023)

• Nearly 1 in 4 consumers see transactions on their account they don’t recognize at first glance at least sometimes or more frequently. This rises to 43% for Gen Z and 35% for Millennials. (What Consumers Want from Financial Providers, 2023)

• When asked what action they typically take when they see a transaction they don’t recognize, consumers reported (What Consumers Want from Financial Providers, 2023):
• 34% search online to see what it might be
• 27% look at receipts to figure it out
• 22% call my financial provider for help
• 14% report as fraud
• 2% nothing

• Gen Z is most likely to report an unrecognized transaction as fraud at 24%, compared to just 7% of Baby Boomers. And, they are just as likely to report as fraud vs. look at their receipts to figure it out. This is an important insight as financial institutions and fintechs deal with an increase in reported fraud. (What Consumers Want from Financial Providers, 2023)

What Consumers Expect From Financial Providers

• When asked which factors are important when it comes to their experience with financial providers today, consumers continue to rank security as No. 1 most often (30%), followed closely by trust (25%). (How to Keep Consumers From Breaking Up with Banks, 2024)

• 74% of consumers trust their financial providers to help protect them from fraud and other security risks. This is a marked increase from 67% when consumers were asked this same question in August 2022. (What Influences Where Consumers Choose to Bank, 2023)

• 69% of respondents who have a primary financial provider say they trust them with their personal data. However, 1 in 10 consumers say they do not trust their primary financial provider with their personal data, and 22% remain neutral on the topic. (A Time for Trust, 2023) 

• Organizations consumers would trust most to securely manage personal financial data (A Time for Trust, 2023):

• 84% of consumers expect their financial provider to proactively alert them when something looks suspicious. (What Influences Where Consumers Choose to Bank, 2023)

• Only 51% of consumers feel financial providers do enough to protect consumers from fraud and other security risks. (What Influences Where Consumers Choose to Bank, 2023)

Security Features Consumers Want

• 36% of consumers would prefer to securely share their financial data from all their accounts so they can receive personalized guidance and insights in one place. This increases to 41% of Millennials and 50% of Gen Z. In contrast, 64% of respondents would rather keep their financial data separated by account to ensure security and privacy. (How to Keep Consumers From Breaking Up with Banks, 2024)

• The top features each generation wants most when it comes to the security and control of their financial accounts are (What Consumers Want from Financial Providers, 2023):
• Gen Z
• 40% ability to download your financial data
• 40% required multi-factor authentication
• 36% ability to restrict transactions above a specific amount
• 35% ability to see and control who has access to your financial data
• 33% ability to get emails on transactions made

• • Millennials
    • 39% ability to download your financial data
    • 33% ability to get emails on transactions made
    • 29% ability to set up card specific alerts
    • 28% ability to restrict transactions at specific vendors or locations
    • 24% biometric login options

• • Gen X
    • 40% biometric login options
    • 36% ability to download your financial data
    • 31% required multi-factor authentication
    • 29% ability to restrict transactions above a specific amount
    • 28% ability to restrict transactions at specific vendors or locations

• • Baby Boomers
    • 48% biometric login options
    • 30% ability to download your financial data
    • 28% required multi-factor authentication
    • 27% ability to restrict transactions at specific vendors or locations
    • 26% ability to restrict transactions above a specific amount