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Financial institutions that quickly reimburse their customers for lost funds after fraudulent transactions are more likely to experience better customer retention, according to a study security software provider ACI Worldwide Inc. published Wednesday. "The post-fraud service offered by banks is crucial to keep customers happy and prevent attrition," the report concludes. ACI in July surveyed 2,408 consumers online in Australia, Brazil, China, Dubai, Germany, the United Kingdom and the United States. Overall, 74% of respondents were pleased with their financial institution's efforts after becoming a victim of card fraud. UK consumers say they are most satisfied with their bank's customer service, with 62% saying they were "very happy." Banks in Singapore and the U.S. also fared well with 55% and 40% of respondents respectively saying they were " very happy"with post-fraud services, according to the survey. Dubai consumers were not pleased with their banks, as only 16% of respondents surveyed were "very happy" with post-fraud services. Overall, 26% of respondents say they were "somewhat unhappy" or "very unhappy" with their financial institutions regarding their handling of fraudulent transactions. The survey found fraud has a negative effect on consumers' view of using plastic, with 18% saying they would "definitely use" cash instead of cards following fraud. Fifty-nine percent said they would use cash "in some situations."
