On Alert for Fraud

Nov  05 
Nicole Howson  Senior Writer, Fiserv 

Notifications become an essential tool in financial security

Smartphones constantly buzz with news and notifications. Your favorite team just made a huge trade. A surprise snowstorm is on the way. Someone just used your card in Las Vegas – while you were at home in Illinois. Alerts are now a part of people's everyday lives. Some are entertaining or informational. Others are essential to keeping life running smoothly.

That's where financial alerts often come in.

Expectations & Experiences: Borrowing and Wealth Management, the latest consumer trends survey from Fiserv, found approximately three-quarters of consumers (73%) received some kind of financial alert in the last year. Some involve bill status or availability of statements. Others notify people of pre-set spending limits being exceeded or unusual activity, among other things.

On average, people who receive financial alerts get 5.4 of them per month. This figure is much higher for younger consumers – 7.8 for Gen Z (ages 18–22) versus 2.8 for seniors (74+). Still, majorities of all age groups have received them.  

The opportunity to prevent fraud is a top priority for financial institutions and consumers alike. Among those who receive alerts, 78 percent say they use them to monitor fraudulent activity. Nearly two-thirds of these fraud-monitoring consumers (63 percent) say alerts have helped them to stop fraud. This appears highly linked to age, with 75 percent of Gen Z and 70 percent of millennials saying this versus just 44 percent of seniors.