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Banks (Finance)

The Fraud Experience: A Key Driver of Consumer Trust and Long-term Banking Relationships

Strategic Insights

— 2 min read

A new report from Cornerstone Advisors, commissioned by Quavo Fraud & Disputes, has uncovered the critical role of the fraud resolution experience in shaping consumer trust, card usage, and long-term banking relationships. The study, which captured feedback from over 2,000 U.S. consumers who experienced fraudulent activity since 2020, reveals that the average consumer rated their fraud experience a C (76/100), with only 8% awarding an A and 25% giving a D or F. The report highlights the importance of treating fraud resolution as a customer experience priority, rather than just a back-office process, to improve customer satisfaction and future relationship growth.

Key Takeaways:

  • The average consumer rated their fraud experience a C (76/100), with only 8% awarding an A and 25% giving a D or F.
  • One in three respondents had faced fraud three or more times in the past five years, while another third had experienced it twice.
  • Nearly one-third reported fraud in the past two years alone.
  • Respondents evaluated five stages of the fraud process, with communication, consistency, and efficiency dragging down overall scores.
  • Consumers who are "very satisfied" with their fraud resolution experience are far more likely to increase card usage, expand their banking relationships, and adopt new products and services.
  • Fraud resolution is no longer a back-office necessity, but a frontline opportunity to differentiate, compete, and win lasting customer loyalty.
  • Institutions that treat resolution as a customer experience priority can see significant improvements in customer satisfaction and future relationship growth.
  • Quavo's technology automates the entire dispute lifecycle, from intake to resolution.
  • Cornerstone Advisors delivers insights, bold strategies, and data-driven solutions to build smarter banks, credit unions, and fintechs.

Statistics:

  • Over 2,000 U.S. consumers with checking accounts or credit cards participated in the 2025 survey.
  • 33% of respondents had faced fraud three or more times in the past five years.
  • 33% of respondents had experienced fraud twice in the past five years.
  • 32% of respondents reported fraud in the past two years alone.
  • 76/100 is the average score for the fraud experience, with consumers awarding an A to only 8% and a D or F to 25%.

Sources:

  • Cornerstone Advisors, "The Fraud Experience: A Key Banking Relationship Differentiator," commissioned by Quavo Fraud & Disputes.
  • Quavo Fraud & Disputes, https://www.quavo.com/.
  • Fintech Talk, "The Fraud Experience: A Key Banking Relationship Differentiator," https://www.business-reporter.co.uk/fintechtalk/the-fraud-experience-a-key-banking-relationship-differentiator.

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