The Real Cost of Identity Fraud Isn’t Just the Loss
In 2023, U.S. identity fraud losses hit $22.8 billion, a 13% increase over the previous year, according to Javelin Strategy & Research. Over half of that – $12.7 billion — stemmed from account takeover (ATO) fraud.
While most banks and credit unions have invested heavily in prevention, fraud resolution remains a major blind spot.
What happens after fraud often determines whether a customer stays loyal, complains publicly, or closes their account.
Most Resolution Experiences Still Fall Short
Too many financial institutions rely on self-directed recovery, forcing victims to navigate credit bureaus, merchants, and law enforcement alone. The result is typically:
🔹 Confusing
🔹 Time-consuming
🔹 Emotionally draining
More than 1 in 3 fraud victims say they’ve considered leaving their financial institution due to poor post-fraud support.
What Customers Expect Has Changed
Today’s consumers want more than a generic support number. They expect advocacy, structure, and a clear resolution path.
🔹 43% of fraud victims want a dedicated resolution specialist
🔹 70% had no identity protection service at the time of the incident
🔹 81% of adults aged 55+ would feel more secure if alerted when their personal data is compromised
And importantly, customers increasingly expect their bank or credit union to step in and help—even if the fraud wasn’t the institution’s fault. Trust is on the line, regardless of blame.
The Shift: Guided Fraud Resolution
Forward-looking financial institutions are adopting guided fraud resolution—a high-touch, structured approach that takes pressure off customers and speeds up recovery.
This model typically includes:
🔹 A single point of contact through a dedicated resolution specialist
🔹 Step-by-step case management
🔹 Regular updates with timeline expectations
🔹 Ongoing education to help reduce future fraud risk
With guided resolution, the institution becomes a true advocate, not just a responder.
Revenue in Action: Identity Protection + Resolution
One national bank introduced a premium identity protection service with concierge-style fraud support. The results were significant:
🔹 Customers enrolled in the program stayed 2.4 years longer on average
🔹 The bank added new fee-based revenue from upgraded protection tiers
🔹 Operations and case management were handled by external partners, freeing up internal teams
What began as a risk response became a loyalty and revenue driver.
Why It Pays to Act Now
Building guided resolution into your fraud strategy delivers multiple benefits:
🔹 Reduce churn by improving the experience after fraud
🔹 Streamline operations with expert-led, consistent recovery processes
🔹 Generate new revenue through paid or bundled identity protection
🔹 Strengthen trust by delivering help when it matters most
Fraud is inevitable. How you respond is what defines the relationship.
Final Thought
Fraud is a make-or-break moment in the customer journey. If victims feel unsupported, they may leave. But if they feel protected and guided, they’re more likely to stay—and even expand their relationship with your brand.
The question isn’t just how to prevent fraud. It’s how to respond when it happens.