As first-party fraud continues to surge, data from FICO indicates that nearly one-third of respondents believe it is either justifiable in certain situations or a commonly practiced behavior.

Muddying the Waters

Inflation and high interest rates have intensified pressure on consumers over recent years, leading to an increase in credit card debt. As a result, many lenders have reduced credit limits, tightened lending standards, and shifted their focus toward more affluent customers.

A Strange Dichotomy

Driven by the rising prevalence of first-party fraud, financial institutions face the challenge of accurately classifying fraud. Only then can banks and credit unions offer the necessary fraud defenses that customers now expect.

This presents a paradox: as more consumers engage in self-inflicted fraud, they are increasingly seeking stronger protection measures themselves.

According to FICO’s survey, nearly one-third of respondents ranked fraud protection as their top priority when opening a new account—above value and customer service. More than half said that solid fraud protection was among their top three considerations when selecting a new account.