Few consumers switch banks after fraud attempt

28 November 2017

One in 10 consumers say they have cancelled a credit or debit card in the last year because of a fraud attack, although few have subsequently moved to another bank.

A survey of 2,000 consumers conducted by price comparison website Compare the Market found that 10% of people had been subject to a fraud attempt, with 37% of these consumers having money stolen from their account.

The average amount stolen was £544.

In more than a third (36%) of cases, the bank did not alert the victim when the attack occurred. Yet few customers have decided to take their business elsewhere.

Just 12% of fraud victims say they changed their credit or debit card provider following the attack.

Consumers are instead demanding better protection from government, with more than half (51%) of fraud victims suggesting that it must do more to protect consumers from cybercrime.

Shakila Hashmi, head of money at Compare the Market, says there are steps consumers can take to protect themselves.

“These findings are really shocking. The scale of the cybercrime problem is huge, in terms of both the number of people defrauded and the amount of money stolen,” she says.

“Digital banking is the new frontier for criminal activity, and while banks will be doing their best to prevent fraud, people should ensure that they are doing everything they can to protect themselves. This is particularly important as we know that banks and credit card providers aren’t always as quick off the mark as they should be in flagging suspicious activity.

“One of the best ways to keep your money safe is to have multiple passwords. They should also be hard to guess, so no obvious dates, names or locations. Our research found that 17% of people have the same passwords for all their accounts, largely for ease of use – but it’s worth taking time to review them.

“Doing this and increasing your vigilance when making payments should help make it that much harder for cyber criminals to succeed, keeping the fraud frenzy at bay this festive season.” 

Read more about fraud and scams on Moneywise

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