Over the past 12 months, 22 percent of credit card customers and 29 percent of bank customers experienced an instance of fraudulent activity on their accounts, according to the J.D. Power U.S. Financial Protection Satisfaction Study. Many experienced more than one instance.
When broken down by age, 42 percent of customers under the age of 40 experienced some form fraud.
“Financial fraud is a big problem for banks and credit card issuers, but it also presents an opportunity from a customer experience perspective when it is handled well,” Jennifer White, J.D. Power senior director for banking and payments intelligence, said. “In fact, customer likelihood to reuse their bank or credit card company and then recommend that entity to friends is actually higher after an institution helps prevent or resolves a fraud incident than when there is no fraud incident at all. However, many institutions still have a lot of work to do when it comes to educating customers on how to protect themselves.”
Nearly half, 49 percent of credit card customers and 46 percent of bank customers had a more positive impression of their bank or credit card issuer after experiencing fraud with 92 percent saying they likely will reuse their bank after having a fraud issue resolved.