WILMINGTON, Del. — Consumers are placing increasing importance on how financial institutions respond to fraud and scams, with poor dispute resolution taking a growing toll on customer loyalty, according to new research released by fraud and disputes technology company Quavo.
The company’s second annual Trust in Banking Research Report, released Thursday, found that nearly 70% of consumers said the way their financial institution handled a fraud claim had a greater impact on their trust than the fraud incident itself. That compares with 62% who said the same in Quavo’s 2025 survey, according to the company.
‘A Trust Issue’
“The 2025 data told us that fraud resolution is a trust issue,” Joseph McLean, Quavo’s CEO and co-founder, said in a statement. “The 2026 data tells us it is now a growth issue. Institutions that treat dispute operations as a back-office function are falling behind on transparency, fairness and scam support.”
According to Quavo, customer perceptions of transparency, fairness and the ease of reporting fraud all declined from a year earlier, suggesting consumer expectations are rising faster than financial institutions are adapting.
The report also expanded beyond fraud disputes to examine consumer attitudes toward scams and so-called friendly fraud, in which consumers dispute legitimate transactions.
The Findings
Among its findings:
- 69.9% of consumers said the quality of the fraud resolution process had a greater impact on trust than the fraud itself.
- Nearly four in five consumers reported experiencing some form of scam exposure.
- Nearly four in 10 consumers said they had filed a dispute they later realized may not have been valid, prompting Quavo to suggest financial institutions could reduce unnecessary claims through improved merchant recognition and better prompts before disputes are filed.
- 61.3% of respondents said a poor fraud resolution experience had a meaningful impact on their loyalty to their financial institution.
Dispute Handling Grows in Importance
Quavo said the findings indicate that dispute handling is becoming an increasingly important factor in customer retention and share of wallet, as consumers evaluate financial institutions based not only on security but also on how effectively they respond when fraud occurs.
The company said the report is intended to help banks and credit unions better understand consumer expectations as fraud, scams and disputed transactions continue to rise.
Quavo, based in Wilmington, Del., provides fraud and dispute management technology to financial institutions. The company said its platform processes more than 1 million disputes each
