Fraud protection now a top priority for UK bank customers
New research has found that UK consumers now place fraud protection at the forefront when selecting financial service providers.
A survey conducted by FICO has revealed that 70% of respondents in the UK identified fraud protection among their top three priorities when choosing a new bank. This trend reflects the increased importance consumers assign to security and trust in financial services.
Fraud prevention as a differentiator
"Fraud prevention is no longer just about reducing losses, it's now a business differentiator. Banks that deliver strong fraud defences while maintaining a smooth digital experience will win customer trust and loyalty," said James Roche, Principal Fraud Consultant for FICO in EMEA.
The findings arise at a time when UK consumers are showing heightened concern over personal identity theft and bank account misuse, with less interest in other forms of financial crime often highlighted in the media. The survey, conducted online with 1,000 British adults, forms part of a broader project of around 18,000 consumers spanning 18 countries.
Shift in fraud landscape
One notable trend found in the survey is a decreasing number of consumers aware of their identities being used to open fraudulent financial accounts. In 2025, 4.1% of UK respondents stated they knew of their stolen identity being used in such a way-down from 7.7% in 2022 and 8.3% in 2020. This decline suggests improvements in fraud controls and bank security measures.
Despite this decrease, concern remains high. Approximately 15% believe it is possible or probable their identity has been misused fraudulently, while 18.2% regard identity theft for account opening as one of their top three fraud-related worries. Meanwhile, 44% of respondents view it as unlikely their identity has ever been abused for fraud, and 26% are certain their identity has not been misused. These numbers indicate a broad range of sentiments regarding risks and reinforce the need for ongoing consumer education and reassurance.
Growing digital openness and abandonment rates
The research highlights changing behaviour, with 40% of those surveyed now more likely to open financial accounts digitally compared to a year earlier. Convenience and speed remain essential elements for customers. Half of UK consumers expect to complete the opening of a personal account within 30 minutes, underscoring growing impatience for lengthy procedures. In cases where ID verification is deemed too time-consuming, 18% said they would abandon their application altogether. This tension between robust fraud protection and efficient service underpins the challenges banks face in retaining and attracting customers in a largely digital environment.
Biometrics and authentication preferences
Biometric authentication methods have gained significant traction among UK consumers in the quest to balance security with convenience. Of those surveyed, 39% have a pronounced preference for fingerprint authentication, while 56% rate biometric security methods-such as fingerprint and facial recognition-as excellent. Iris scans, while less frequently used, are perceived as the most secure of the biometric options. The data signals a recognition among consumers that advanced authentication technologies offer both a high level of security and ease of use, and that there is a growing expectation for banks to provide these features during the digital account opening process.
Overall, the survey findings convey a message that, for UK consumers, robust fraud protection not only mitigates risk but also builds customer loyalty and confidence in digital financial services.
