Banking on Trust: Protecting Consumers from Fraud
JD Power Financial Services Intelligence Update
How can banks and credit card issuers effectively safeguard consumers against fraud while meeting their expectations for protection and resolution? Jennifer White, Senior Director of Banking and Payments Intelligence at JD Power, explores key insights into customer perceptions and the actions financial institutions can take to enhance trust and satisfaction.
Proactive Protection Is Key
White explains, “What can be done ahead of bad action occurring is just as crucial as resolving fraud quickly with minimal friction.” The study highlights two distinct stages of fraud management: proactive measures to prevent incidents and swift, low-friction resolutions when they occur.
Surprising Findings
- Consumer Behavior Gaps: While most consumers think they’re protecting themselves, nearly a quarter have taken no action in the last 90 days. Even more rely on reactive strategies like reviewing transactions after the fact.
- Under-40s at Higher Risk: P2P transfers and debit card usage drive higher fraud rates among younger populations, debunking myths that older consumers are the most vulnerable.
- Who Gets the Blame? Surprisingly, customers tend to blame fraudsters or themselves rather than their bank. This finding underscores the opportunity for banks to strengthen relationships post-incident.
Read more key findings.
Why Proactive Alerts Matter
The research shows that when financial institutions notify consumers about fraud—whether through alerts or direct communication—customer satisfaction soars. It’s a simple yet impactful way to show that you’re putting their safety first.
Where can you find more insights like this?
The JD Power U.S. Financial Protection Satisfaction Study measures the experiences of customers of the largest retail banks and credit card issuers with the account protection and fraud resolution services provided by their financial institutions.
More About These Experts
Jennifer White, the Senior Director of Banking and Payments Intelligence at JD Power, is pivotal in shaping the financial industry's understanding of consumer behavior. With over 20 years of market research experience, Jennifer leads prestigious studies, including the Retail Banking Satisfaction Studies and the Financial Health & Advice Program, driving critical insights that influence banking strategies across the U.S. and Canada. Her work on consumer financial health, digital banking trends, and fraud impacts is highly regarded and widely featured in top-tier publications like Forbes, The New York Times, and The Wall Street Journal. A respected thought leader and speaker, Jennifer’s expertise helps financial institutions enhance customer satisfaction, loyalty, and trust through innovative, data-driven strategies.
Miles Tullo is the managing director of the JD Power Financial Services team. He oversees the company’s consumer payments program, focusing on point-of-sale choice and non-credit card payment methods. Drawing from over 20 years of experience in both payments and mortgage lending, Miles brings valuable expertise to clients.
