According to a recent survey, two-thirds of Indian consumers believe that banks should reimburse victims of scams. Specifically, 31% of consumers think banks should always compensate scam victims, while 35% believe they should do so most of the time.
The survey called ‘Scams Impact Survey: India’, also found that more than a third (37%) of Indian consumers would hold banks accountable if they fell victim to a scam, with 19% blaming their own bank and 18% blaming the receiving bank.
This highlights the crucial need for banks to implement strong scam response strategies to reduce operational costs, address customer complaints, and retain their clientele.
“Indian consumers expect their banks to take the lead in the fight against fraudsters,” said Dattu Kompella, Managing Director in Asia for FICO.
The survey revealed that Indian consumers have varied preferences when it comes to receiving scam notifications. While 23% favor their bank’s app, 39% prefer text messages, and 26% opt for phone calls.
This shift shows a growing trend towards more secure channels like banking apps over traditional methods such as email, phone, and text. However, no single method satisfies all consumers, emphasizing the need for banks to adapt to individual preferences.
The survey also found that while 7% of consumers believe banks should never be liable for scam losses, and 19% think liability should be rare, a significant 66% expect banks to reimburse victims most or all of the time. This growing consumer expectation puts additional pressure on banks to enhance their fraud prevention and response strategies ahead of any upcoming regulatory changes.
The positive news is that 87% of consumers in India report being somewhat (24%) or very (63%) satisfied with how their bank handles scams. To improve further, banks are encouraged to prioritize each customer’s preferred method of communication for critical scam alerts within the RTP ecosystem.
The survey is conducted by an independent research company; FICO, a global analytics software leader. Survey included 1,000 Indian adults and approximately 11,000 other consumers across 14 countries. The survey explored experiences related to real-time payment (RTP) usage, scams, and the scam management capabilities of banks.
