WILMINGTON, DE — A new report from Cornerstone Advisors, commissioned by Quavo Fraud & Disputes, highlights that how banks and card issuers resolve fraud—not just prevent it—has become a defining factor in consumer trust and long-term loyalty.
The study, titled The Fraud Experience: A Key Banking Relationship Differentiator, surveyed more than 2,000 U.S. consumers with checking accounts or credit cards who had experienced fraudulent activity since 2020. One in three respondents reported fraud three or more times in the past five years, while another third experienced it twice. Nearly one-third encountered fraud in just the past two years.
On average, consumers rated their fraud experience a C (76 out of 100). Only 8 percent gave their bank or issuer an A, while 25 percent graded their experience a D or F. Respondents evaluated five key stages: detection, provisional credit issuance, investigation and documentation, final resolution, and communication. While most were satisfied with outcomes, gaps in consistency and communication weakened overall scores.
“Fraud has become an unfortunate reality of everyday banking,” said Ron Shevlin, Chief Research Officer at Cornerstone Advisors. “How issuers handle fraud resolution has a direct impact on cardholder trust and loyalty, however. Institutions that treat resolution as a customer experience priority—and not just a back-office process—can see significant improvements in customer satisfaction and future relationship growth.”
Industry experts say the findings reflect a shift in consumer expectations. “Detection is critical, but it’s the resolution experience that defines the relationship,” said Ryan Sorrels, Chief Revenue Officer at Quavo Fraud & Disputes. “With automation, digital self-service, and real-time communication, issuers can transform fraud from a pain point into an opportunity to build confidence, loyalty, and growth.”
The study underscores a clear competitive advantage: consumers who report being “very satisfied” with their fraud resolution are more likely to increase card usage, expand their banking relationships, and adopt additional products. For issuers, fraud resolution is no longer just an operational requirement—it is a strategic opportunity to differentiate and strengthen customer loyalty.
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