Turning fraud resolution into a trust metric

Fraud is inevitable. Distrust isn’t.

 

Cornerstone Advisors’ Fraud Resolution Experience Index offers a new way to measure how consumers perceive their bank or credit union after experiencing fraud. Unlike traditional fraud metrics that focus on loss mitigation or case closure rates, this index captures the customer experience: how informed, supported and valued consumers feel throughout the process.

 

The implications are clear: a strong fraud resolution experience builds confidence and loyalty, while a poor one erodes both.

 

A new KPI for trust

 

The Fraud Resolution Experience Index aggregates consumer ratings across five areas – fraud identification, provisional credit, investigation, resolution and communication – producing a score out of 100. The average score across surveyed consumers was 76, or a “C”. Only 8 per cent rated their experience an “A”, while one in four gave it a “D” or “F”.

 

This makes the index more than just a satisfaction metric, but a trust benchmark. It quantifies how well an institution transforms a negative event into a moment of reassurance. A higher score correlates directly with card reuse, expanded product engagement and long-term loyalty.

 

What’s driving dissatisfaction

 

It’s not the fraud itself that frustrates consumers. It’s the lack of visibility after they report it.

• Limited transparency: nearly one-third of consumers said updates were unclear or infrequent
• Process opacity: 82 per cent lacked digital tools to upload documents or track progress
• Resolution delays: one in five waited more than two weeks for full resolution, often unsure of where things stood

These breakdowns leave consumers feeling ignored or powerless during an already stressful experience.

 

What drives satisfaction

 

On the flipside, clarity and communication proved to be the strongest satisfaction drivers. Consumers who received consistent updates and clear explanations rated their experience significantly higher, regardless of how long resolution took. Fast provisional credits and timely card replacements also boosted confidence, but communication consistently outperformed speed as the factor most likely to turn frustration into trust.

 

Where to focus first

 

Institutions looking to improve their index scores should start with transparency. Real-time status tracking, digital self-service tools and empathetic communication are the most effective ways to build trust, especially when paired with automation that streamlines the investigation process.

 

Technology partners such as Quavo are helping institutions modernise these workflows. Through configurable, end-to-end dispute management solutions capable of automating the entire dispute lifecycle – from intake to resolution – Quavo enables real-time updates, automated credit issuance and seamless documentation, allowing institutions to improve both operational efficiency and customer experience simultaneously.

 

From resolution to relationship

 

The lesson is simple but profound: speed matters, but empathy wins. Even small improvements in clarity and care can turn a fraud incident into a loyalty-building moment. The Fraud Resolution Experience Index proves that resolving fraud well isn’t just a compliance necessity, it’s a brand opportunity.

 

Fraud may be unavoidable, but losing customer trust doesn’t have to be. So, where do you stand on the Fraud Resolution Experience Index?

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Download the full report to benchmark your institution and discover actionable strategies to strengthen your fraud resolution experience