WILMINGTON, DE — Quavo Inc. released research indicating that consumers increasingly judge financial institutions by how they resolve fraud and scam claims, highlighting operational challenges that could affect customer retention and revenue.
The company announced its second annual Trust in Banking Research Report, which examines changes from its 2025 study and expands its analysis to include scam handling and so-called friendly fraud. According to the report, shortcomings in dispute resolution are contributing to weaker customer trust, reduced loyalty, and increased churn.
Nearly 70% of consumers surveyed said the way their financial institution handled a fraud dispute had a greater impact on trust than the fraud incident itself, up from 62% in the company’s 2025 study.
The report also found that nearly four in five respondents reported some level of scam exposure, while nearly four in 10 acknowledged filing a dispute they later realized may not have been valid. Quavo indicated that improved merchant recognition tools and pre-claim prompts could help reduce invalid claims before they are submitted.
In addition, 61.3% of respondents reported that a poor fraud-resolution experience had a meaningful effect on their loyalty to their financial institution.
“The 2025 data told us that fraud resolution is a trust issue,” Quavo Chief Executive Officer and Co-Founder Joseph McLean stated. “The 2026 data tells us it is now a growth issue.”
Quavo indicated the research is intended to help banks and credit unions evaluate how fraud, scam, and dispute resolution practices influence customer relationships and long-term business performance.
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