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In 2020 alone, total combined fraud rose to $56 billion, with identity fraud scams accounting for $43 billion of that cost, according to Javelin’s 2021 Identity Fraud Study. While scams have been around since practically the beginning of time, thieves double downed on this approach in 2020. But why?
The pandemic drastically changed consumers’ lives and their digital behaviors. For instance, consumers were forced to spend more time in their homes than ever before. The shift in where consumers spent their physical time also changed how consumers spent their time. With less time spent commuting to the office and limited opportunities to go outdoors, consumers relied heavily on streaming services, e-commerce, and digital payments like peer-to-peer networks. This shift in digital behavior made consumers more vulnerable than ever to identity fraud. And with the average consumer less familiar with common identity fraud tactics, fraudsters intensified their efforts in tricking consumers into divulging their personally identifiable information and even their hard-earned money.
That’s why it’s critical that financial institutions – as well as other organizations like insurance carriers and cybersecurity providers – help consumers identify fraudulent solicitations via educational resources around new and common scams. While education is crucial, it’s equally as important for these institutions to provide satisfactory fraud resolution in the event their customer does become a victim of identity fraud, as Javelin found that identity fraud eventually leads to customer attrition – particularly for financial institutions. “In 2020, 48% of consumers said they would stay with their financial institution if satisfied with resolution.”
With 76% of surveyed consumers stating that to feel truly protected from identity thieves and cybercriminals, they would need the help of a trained expert, it’s clear that your customers are seeking expert advice and guidance to help them navigate the world of identity theft, fraud, and scams. Providing your customers comprehensive identity & cyber protection with 24/7/365 full-service resolution support from a reputable provider is key to helping you meet your retention goals and offer your customers something they truly value.
Our whitepaper, “Fraud-Prevention Education: A Positive Customer Experience,” explores these ideas and much more. Interested in learning how you can help positively impact customer retention with services your customers are looking to purchase from you? Download our free whitepaper today!