Fraud and online security in financial services are frequently identified as key concerns by consumers. These issues are increasingly becoming a battleground for differentiation among providers, who are keen to drive down the costs related to fraud and provide a reliable and reassuring service for customers. As a whole the financial services industry has made significant steps forward in tackling fraud, with regulations such as GDPR and PSD2 forcing banks to take action to improve their security protocols. However, the number of incidents of fraud continues to grow year-on-year, with mounting losses. Fraudsters are constantly adapting and innovating, and the industry must do the same to keep up.

This report first examines the market environment; specifically the different types of fraud and how these are impacting the market. It focusses on the effects of recent regulation and how providers will respond in the future, before looking at some recent brand and company developments in this area.

Mintel’s exclusive consumer research looks at the types of fraud and security issues people have experienced, and the various channels used to report them. It looks at how seriously people have been affected by the issues they have faced; as well the measures people take to prevent fraud and security issues. Finally, the report looks at what consumers perceive to be the riskiest financial activities, as well as general attitudes towards fraud and security issues.