FICO Survey: Fraud Department Is Secret Weapon for UK Customer Acquisition

70% of UK consumers ranked fraud protection among their top three considerations when choosing a new bank

LONDON--(BUSINESS WIRE)-- FICO (NYSE: FICO)

New researchⁱ on fraud, identity, and digital banking from global analytics software leader FICO reveals that British consumers are prioritizing fraud protection over other considerations when selecting financial service providers.

Banking-related fraud, such as stolen cards and identity theft leading to application fraud, tops their list of concerns, while traditional scams like cash theft and shopping frauds rank far lower.

“Fraud prevention is no longer just about reducing losses, it’s now a business differentiator,” said James Roche, principal fraud consultant for FICO in EMEA. “Banks that deliver strong fraud defences while maintaining a smooth digital experience will win customer trust and loyalty.”

More information: https://www.fico.com/en/latest-thinking/ebook/2025-consumer-survey-uk-fraud-identity-and-digital-banking

Key Findings:

• 35% rank good fraud prevention as their number one consideration when signing up to a new bank and 70% had it in their top three.
• 39% strongly prefer fingerprints as their authentication method; 56% rate biometric security as excellent.
• 40% are more likely to open a financial account digitally than they were a year ago.
• 18% abandon opening a personal banking account if ID verification is too time-consuming.

“The fraud team might be considered an overhead, a necessity to cut fraud losses, but our survey suggests the fraud department is vital for attracting new customers and building trust,” added Roche. “Customers need to trust their financial services provider, which is why it’s critical for banks to ensure fraud checks and identity proofing are appropriate and proportionate. They should be able to deliver personalized and timely communications about the process to their customers.”

While fraud protection is critical, the FICO survey also highlights consumer intolerance for delays. Half of respondents expect to open a personal account in under 30 minutes, and lengthy verification checks drive abandonment.

Biometrics play a leading role in that trust. Fingerprint and facial recognition dominate usage, while iris scans, though less common, are considered the most secure. The growing confidence in advanced biometric technology reflects consumer demand for both security and convenience.

The Need for an Enterprise Fraud Approach

“Financial institutions must manage multiple fraud types across the customer lifecycle, with each type carrying the potential to damage trust and customer experience,” Roche noted. “The research points to the importance of an enterprise fraud strategy — one that breaks down silos, integrates data across portfolios and channels, and prioritizes the customer. Operationalizing an enterprise fraud strategy can both reduce fraud losses and enhance customer satisfaction, turning a friction point into a foundation of trust.”

For more information on how FICO can help financial services organizations protect consumers from fraud, visit https://www.fico.com/en/customer-lifecycle/protect-and-comply.

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency.

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ⁱ This online survey was conducted by an independent research company adhering to research industry standards. 1,000 British adults were surveyed, concluding in April and May of 2025. This was part of a project surveying approximately 18,000 consumers in 18 countries including: Brazil, Canada, Chile, Colombia, Germany, India, Italy, Netherlands, Mexico, South Africa, Thailand, Philippines, Spain, UK, USA, Malaysia, Singapore and Indonesia.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251029525167/en/

For further press information please contact:

FICO UK PR Team

Wendy Harrison / Matthew Enderby

ficoteam@harrisonsadler.com

0208 977 9132

Source: FICO