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Study: FI customer trust hinges on protection from fraud

August 27, 2013

In its 2012 report, "Confidence in Banks," Gallup said consumer confidence in U.S. banks hit a record low of 21 percent last year. The percentage of Americans with "a great deal" or "quite a lot" of confidence in banks is half of what it was in 2007, before the recession.

Yet despite their lack of confidence in banks, American adults overwhelmingly trust their preferred FI to protect their sensitive personal data. 

A new poll by transaction protection company Entersekt found that 72 percent of adults in the U.S. believe that their bank does all it can to protect their online banking transactions. It also found that 71 percent of Americans would be at least "somewhat likely" to change banks if they became a victim of online banking fraud.

"Banks are in a precarious reputational position with consumer confidence low, accountholder trust high and fraud attacks on the rise in the United States," said Christiaan Brand, CTO at Entersekt, a provider of transaction authentication technology. "[O]ne breach, one major hack, one news story on fraud can shatter a bank's reputation, leading to an exodus of customers."

The survey found that more than one-half (58 percent) of Americans would be at least somewhat willing to take an active role in securing their online banking transactions if this meant using their mobile phone to authenticate activities, such as login, transfers and bill payment.

"Customers shouldn't abandon [online] channels," Brand said. "They should simply take a more aggressive and active role in their protection."

The survey was conducted online within the United States by Harris Interactive on behalf of Entersekt. A total of 2,052 American adults were polled between May 14 and May 16.

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