Payments Survey: 69% of Canadians Want Scam Protection in Real-Time Transactions
A recent survey conducted by global analytics software leader FICO reveals a significant shift in consumer behavior, particularly with regard to real-time payments (RTP) in Canada. The study highlights the growing reliance on RTP, the challenges posed by rising scam attempts, and the importance of fraud detection in maintaining consumer trust. FICO’s findings show that while Canadians are increasingly adopting RTP, they also expect banks to take proactive measures to combat fraud, with an emphasis on improving fraud detection systems and flagging suspicious transactions and Payments.
Canadians Embrace Real-Time Payments Despite Scam Risks
According to the 2024 FICO Scams Impact Survey: Canada, 91% of Canadian consumers have used RTP, and 87% plan to either maintain or increase their usage in the next 12 months. This growing adoption of RTP has also led to an uptick in scams and fraud attempts. The survey indicates that 69% of consumers would feel more positive about their banks if they proactively stopped RTP transactions identified as scams. Such actions would significantly improve customer retention and loyalty.
Rising Scam Threats as a Consequence of Increased RTP Usage
The survey also found that Canadian consumers are facing an escalating number of scams. A staggering 6% of Canadians who reported being scammed faced losses of over C$10,000—six times the number of such cases in 2023. This increase underscores the growing challenges for consumers as scammers exploit the rise in digital payments, including real-time transactions.
Globally, the impact of scams is also becoming more widespread. In North America, 47% of consumers reported that family or friends had fallen victim to RTP-related scams, while the numbers were even higher in other regions, including Latin America (69%), Europe (48%), and Asia-Pacific (56%).
What Consumers Want: Better Fraud Detection and Alerts
As scams continue to rise, consumers are voicing their expectations for how banks should handle fraud prevention. Nearly half (48%) of Canadian consumers identified the enhancement of fraud detection systems as the most impactful action banks could take to protect them. Providing more alerts about known or emerging RTP scams was the second most requested action, with 18% of consumers citing it as important. Furthermore, 12% of respondents want banks to decline payments flagged as “high risk.”
FICO’s Debbie Cobb, vice president of fraud product management, emphasized the urgency of the situation: “Consumers are increasingly concerned about scams, and many are turning to their banks to help protect them. Banks that take proactive measures, such as leveraging advanced fraud detection technology, will strengthen consumer trust and enhance customer experiences.”
Consequences of Inaction: Customer Churn
FICO’s survey also reveals the potential consequences for banks that fail to address the issue of scams effectively. Globally, 12% of Canadians and 13% of consumers worldwide stated that they would switch banks if they were dissatisfied with how their bank handled scam-related issues. This highlights the significant reputational risk for financial institutions that fail to meet consumer expectations for fraud prevention.
For banks, the need to adopt transactional monitoring models that include scam and fraud detection scores is clear. These systems are essential to minimize the impact of fraud while ensuring that customers can continue to use RTP services with confidence.
The Role of Technology in Combatting Scams
As the use of RTP grows, the importance of integrating advanced fraud detection technologies becomes more critical. FICO’s fraud solutions have protected over 4 billion accounts and secured more than 180 trillion transactions annually. By utilizing these tools, banks can better protect consumers against scams and fraud while improving the overall payment experience.
FICO’s survey results reflect the need for financial institutions to continuously innovate and invest in Payments fraud protection technology. By integrating cutting-edge AI and machine learning systems, banks can stay ahead of scammers and provide consumers with the security they demand.
