FICO Survey: 42 Percent of South Africans Believe It Is OK to Exaggerate Insurance Claims

Consumers see need for stronger fraud and security protection, but too many checks will turn them off

Many financial institutions consider their fraud teams to be a necessary overhead to cut fraud losses, but the latest consumer survey from global analytics leader FICO shows that a successful fraud protection function can drive sales and increase revenue. The survey also reveals consumer attitudes and preferences regarding fraud checks – and indicates that many will commit fraud themselves to get a loan or file an insurance claim.

More information: https://www.fico.com/en/latest-thinking/ebook/consumer-survey-2022-fraud-identity-and-digital-banking-south-africa

When asked to rank their considerations in selecting a financial account provider, 36 percent ranked good fraud prevention as their number one concern and 43 percent ranked it as the second most important consideration, making it by far the most important measure of the eight in the survey. This suggests that financial institutions that can effectively communicate a focus on fraud protection will have a competitive advantage. Ease of use in accessing their banking services was selected as the number one criterion for 31 percent of respondents. Sound environmental and green policies were only considered a top consideration for 1 percent, while 35 percent had ranked it last of 8 in the list of considerations.

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