Capco, a Wipro company, recently published the results of its US Payment Fraud Survey, which canvassed a representative sample of 1,000 U.S. consumers aged 18‑75. Conducted to capture real‑world experiences, attitudes toward reimbursement, and the trade‑off between security and convenience, the survey paints a detailed picture of how everyday users are encountering fraud, what they expect from their financial institutions, and how emerging technologies—particularly deep‑fake‑driven biometric attacks—are reshaping those expectations. The findings are especially pertinent for banks, payment processors, compliance officers, and fintech firms that must balance robust protection with user‑friendly experiences in an environment where fraudsters are increasingly leveraging artificial intelligence.
Capco Survey Details Consumer Fraud Experiences and Priorities
The survey revealed that 49 % of respondents had faced an attempted payment fraud incident within the past two years. The most common manifestation was “purchases they did not make,” reported by 45 % of those who experienced fraud—a figure that aligns closely with the source’s 40 % citation for this fraud type. Other notable fraud vectors included:
- Phishing attacks – 36 %
- Card or card‑data theft – 33 % (the source notes a 46 % concern for this category)
- Fake online stores – 27 %
- Push‑payment fraud – 26 %
- Account takeover – 25 %
When asked what drives their choice of a financial institution for payment services, 63 % ranked security as an “important factor,” while 50 % highlighted the need for advanced fraud protection. Additional considerations—also captured in the source—include customer service quality (42 %), 24/7 accessibility (42 %), transaction speed and reliability (34 %), ease of user experience (31 %), and brand reputation (30 %).
Balancing security with convenience emerged as a nuanced priority. 42 % of participants declared security their absolute priority, whereas 32 % wanted security first but still expected a reasonable level of convenience. A smaller segment (23 %) sought a balanced approach, and only 4 % placed convenience above security. Frustrations with existing security controls were pronounced: 40 % find complex passwords cumbersome, 32 % are annoyed by security codes (e.g., MFA tokens), 28 % dislike challenge questions, and 20 % are irritated by mobile/email activity notifications. These pain points underscore the need for friction‑less yet effective authentication methods.
Deepfake Anxiety and Confidence in Institutions
Consumer confidence in institutional protection remains relatively high: 53 % are very confident and 37 % are somewhat confident that their primary financial institution will safeguard them, totaling 90 % overall confidence. Nevertheless, the survey uncovered a pervasive unease about the digital footprint consumers leave online. An overwhelming 89 % worry that online personal data could be used to facilitate impersonation or reveal answers to security questions.
The deep‑fake phenomenon sharpened that anxiety. 69 % of respondents expressed concern that deep‑fake technology could undermine voice biometrics and facial ID. Within this group, 24 % consider these biometric methods “not entirely secure,” 6 % label them outright “insecure,” and 39 % fear they will become “future threats.” Awareness of these risks appears uneven: 62 % say their financial institution has communicated deep‑fake threats and mitigation steps, 26 % report no such information, and 12 % cannot recall.
These figures illustrate a paradox: while most consumers trust their banks, a sizable majority remain wary of how emerging AI‑driven attacks could erode that trust, especially if institutions fail to educate users proactively.
Industry Response and Recommended Defenses
Capco’s leadership emphasized that the fraud landscape is evolving at a speed that outpaces many legacy defenses. Matthew Cohn, Partner & US Head of Banking & Payments, warned that “payment fraud in the US is becoming more organized, automated and sophisticated, with scammers increasing their use of modern technologies and AI‑enabled tools.” He urged banks to close detection gaps with AI‑enabled real‑time tools and to embed security as a core product attribute rather than an afterthought.
Gregg Henzel, Managing Principal, US Financial Crime, Risk, Regulation and Finance, added that fraudsters are now selling data, services, and tools to each other, effectively building an AI‑enabled criminal industry. His recommendations focus on a multi‑layered defense architecture that includes:
- Improved internal coordination across fraud, risk, and technology teams.
- Cross‑institution information sharing to surface emerging patterns quickly.
- Detection gap analysis to pinpoint weak spots in existing monitoring.
- AI‑driven analytics that ingest diverse data dimensions for near‑real‑time decision‑making.
- Best‑of‑breed vendor selection to ensure tools stay ahead of adversary capabilities.
The accompanying US Payment Fraud report expands on these themes, outlining five fraud categories and proposing concrete steps such as multilayered defenses, enhanced data sharing, and AI‑enabled real‑time detection.
Key Takeaways
- 49% of surveyed U.S. consumers reported attempted payment fraud in the past two years, with “purchases they did not make” cited by 45% of respondents.
- Security (63%) and advanced fraud protection (50%) are the top factors influencing consumers when selecting a financial institution for payment services.
- 69% of respondents are concerned about deep‑fake technology’s impact on biometric authentication, and 89% fear that online personal data could aid impersonation.
FinanceInsyte's Take
The survey underscores that U.S. consumers expect robust, security‑first payment experiences and are increasingly wary of AI‑driven threats such as deepfakes. While confidence in existing institutions remains relatively high, the gap between consumer expectations and current communication about emerging risks suggests a need for clearer, proactive disclosure. Executives should monitor how quickly banks adopt AI‑enabled detection and coordinated data‑sharing frameworks to sustain trust and meet the heightened security demands highlighted by the survey.
Source: Businesswire
