Consumers call on banks to enhance fraud detection, provide better real-time alerts
A new survey from global analytics leader FICO reveals that a significant portion of Canadian consumers want banks to take stronger actions against scams, particularly in real-time payment (RTP) transactions. The FICO 2024 Scams Impact Survey: Canada highlights that 69% of Canadians would have a more positive view of their bank if it proactively stopped RTP transactions flagged as scams.
As RTP continues to gain popularity, with 91% of Canadians using it and 87% planning to maintain or increase their usage in the next year, the survey reveals a growing concern over scam-related losses. With an uptick in scam attempts tied to the rise of RTP, Canadian consumers are calling on banks to enhance fraud detection and provide real-time alerts during payment processes.
“FICO found that 83% of Canadians have received a text, email, or phone call they thought was part of a scam, while 44% say their family or friends have been victims of a scam, a 5% increase from 2023,” said Debbie Cobb, vice president of fraud product management at FICO. “Consumers are also asking for banks to improve fraud detection and provide more warnings and communications about scams during the payment process.”
Shifting expectations in fraud management
The rise in fraud attempts has not only led to financial losses but also a shift in consumer expectations. Nearly half of Canadian consumers (48%) say the most impactful step banks can take is implementing better fraud detection systems. Another 18% prefer receiving more alerts about emerging scams, while 12% favour banks declining “high-risk” payments.
Canadians are experiencing significant financial losses due to scams, with 6% of victims reporting losses exceeding C$10,000—six times the number recorded in 2023. The global scope of the problem is also evident, with many consumers worldwide reporting increased scams in 2024, particularly in North America, where 47% of respondents noted that their family or friends had been targeted by fraudsters.
The survey further underscored the potential consequences for banks that fail to address consumer concerns. Twelve percent of Canadians said they would switch banks if they were dissatisfied with how their bank handled scams.
With fraud detection technologies becoming more sophisticated, banks have an opportunity to improve customer retention by proactively preventing fraud during RTP transactions, the report noted.
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