37% of Consumers Highly Concerned About Credit Card Fraud

A recent report, “Consumer Credit Economy: Credit Card Fraud,” a collaboration between PYMNTS Intelligence and i2c, reveals a substantial level of consumer concern surrounding this issue.

It shows 28% of consumers having already fallen victim to credit card fraud within the last year. Moreover, 37% express being very or extremely worried about the prospect of unauthorized access to their credit card accounts.

This pervasive anxiety underscores a fundamental expectation among consumers: that banks will take a leading role in both preventing and resolving fraudulent activity. The findings suggest that financial institutions face a growing imperative to actively monitor and intervene in cases of suspected fraud to maintain customer trust and satisfaction.

The report highlights a clear consumer sentiment that the onus of fraud prevention and resolution lies primarily with banks and credit card networks, not with individual account holders. Indeed, the vast majority of consumers, 82%, believe banks are responsible for resolving credit card fraud, and 75% hold them accountable for preventing it in the first place.

Encouragingly, the data indicates that banks largely meet this expectation, with 91% of consumers reporting that their bank intervened before they had to take action. Notably, consumer satisfaction is highest when banks proactively alert them to fraudulent charges before they themselves become aware. This proactive stance not only mitigates potential financial losses for consumers but also significantly bolsters their confidence in their banking partners.

Key data points from the report underscore the urgency for banks to prioritize fraud prevention and response:

Nearly three in ten consumers (28%) experienced credit card fraud in the past year, indicating the widespread nature of the threat and the potential for a large segment of the customer base to be affected.

A strong majority of consumers (90%) who had their banks proactively address fraud reported being very or extremely satisfied with the handling of the situation, demonstrating the positive impact of vigilance on customer loyalty.

Only a small fraction (5.2%) of consumers switched banks after experiencing fraud, but those who did suffered a significantly higher average loss of $475 compared to the $287 lost by those who took less drastic actions, signaling that higher-value fraud events can trigger significant customer attrition.

Beyond these key findings, the report also delves into the preferred methods of fraud notification, with mobile alerts being the most common. It further examines the actions consumers take after experiencing fraud, with requesting a new credit card being the most frequent response.

The data also reveals the varying levels of concern across different demographic groups. The report’s methodology is based on a census-balanced survey of 2,158 U.S. consumers conducted in August 2024, providing a comprehensive snapshot of consumer experiences and expectations regarding credit card fraud. For banking professionals, this report offers valuable insights into the critical role they play in safeguarding their customers and maintaining trust in a digital financial landscape.