New Cornerstone Advisors Study Reveals Fraud Resolution Is a Key Differentiator in Banking Relationships

While 25% of surveyed consumers gave their banks failing grades for fraud resolution, satisfied customers gave high marks for their providers' ability to protect their accounts

SCOTTSDALE, Ariz., Oct. 1, 2025 /PRNewswire/ -- A new research study conducted by Cornerstone Advisors, a leading provider of business and technology consulting services for banks, credit unions, and fintech firms, reveals that the fraud resolution experience plays a critical role in shaping consumer trust and loyalty with banks and credit card issuers.

The report, The Fraud Experience: A Key Banking Relationship Differentiator, was commissioned by Quavo Fraud & Disputes and is based on a survey of more than 2,000 U.S. consumers with debit and credit cards who were subject to fraudulent activity within the past five years, with one in three having faced fraud three or more times during that period.

"Fraud is inevitable, but a poor fraud resolution process doesn't have to be," said Ron Shevlin, chief research officer at Cornerstone Advisors. "The survey data illustrates a clear connection between a customer's experience with fraud resolution and their continued use of an impacted account."

To gauge the fraud experience, Cornerstone created a Fraud Experience Index based on a 100-point methodology that asked survey respondents to score their fraud experience across five areas: detection, provisional credit issuance, investigation/documentation, final resolution, and communication.

The average overall Fraud Experience Index score was 76—equivalent to a "C" grade. Only 8% of consumers rated their experience as excellent (A), while 25% gave failing grades (D or F). Providing provisional credit and investigation/data collection received the lowest scores from cardholders.

Among the key findings:

• Fraud identification/detection and final decision/resolution received the highest satisfaction scores, with 60% of consumers reporting that issuers responded within minutes or hours.
  
  
• Provisional credit issuance and investigation/documentation were rated lowest, with more than 40% signaling they were not given temporary credit during the investigation.
  
  
• While 53% of cardholders indicated that real-time status updates helped to improve their fraud resolution experience, 32% said the capability wasn't available to them.
  
  
• Consumers who had positive fraud resolution experiences expressed stronger trust, were more likely to continue using their cards, and were less likely to switch institutions.

"This study underscores what we see every day in our work with financial institutions," said Ryan Sorrels, chief revenue officer at Quavo Fraud & Disputes. "Fraud resolution is no longer just an operational challenge but a competitive differentiator. With automation, digital self-service, and real-time communication, issuers can transform fraud from a pain point into an opportunity to build confidence, loyalty, and growth."

The survey data proves that fraud resolution defines the relationship, Shevlin concluded. "The quality of the fraud experience is as important to consumers as preventing fraud in the first place, and banks and issuers who get this right will stand apart from the competition."

Download the free report here: https://www.crnrstone.com/gritty-insights/research/the-fraud-experience-a-key-banking-relationship-differentiator. To dive deeper into the findings, tune in to Fintech Talk's upcoming episode featuring Ron Shevlin and Ryan Sorrels

About Cornerstone Advisors
For over 20 years, Cornerstone Advisors has delivered gritty insights, bold strategies, and data-driven solutions to build smarter banks, credit unions, and fintechs. From technology systems selection and implementation to contract negotiations, performance improvement, vendor management, strategic planning, and merger and acquisition services, Cornerstone combines expertise with research and proprietary data to help financial institutions thrive in today's challenging environment.

About Quavo
Quavo is a leading technology partner and strategic advisor, helping financial institutions (FIs) build trust-driven customer relationships through faster, more transparent dispute resolutions. Our mission is to restore financial trust by simplifying fraud and disputes. Quavo's award-winning technology automates the entire dispute lifecycle, from intake to resolution. FIs can pair this end-to-end solution with our expert-led back-office investigation team in one turnkey managed service. Scalable for institutions of all sizes, Quavo's solutions reduce losses, ensure compliance, and enhance customer loyalty.

Media Contact:
Cate Pitts, Editorial Director
Cornerstone Advisors
(480) 425-5203
402041@email4pr.com

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SOURCE Cornerstone Advisors