Most Europeans still trust banks despite fraud fears

Fourthline has published research showing that most European consumers still trust their bank despite the impact of fraud. The survey found that 64% of fraud victims continue to trust their bank with their money.

Across the full sample, 73% of Europeans said they trust their bank to handle their money securely, while 12% said they do not. A separate measure found that 60% trust their bank to act in their best interests, including 54% of those who said they had been victims of financial or mortgage fraud.

The findings are based on a survey of 6,000 adults in the UK, France, Germany, Spain, Italy and the Netherlands. Research company Opinium conducted the poll, which included 1,237 respondents who said they had experienced financial or mortgage fraud.

While trust remained relatively high, the data showed a decline from the previous year. The share of consumers who trust banks to handle their money securely fell to 73% from 82%, while the share who distrust their bank rose to 12% from 9%.

The shift suggests fraud is starting to weigh on confidence, even if it has not triggered a broader breakdown in customer relationships. Among those who had experienced financial or mortgage fraud, 72% said they stayed with their bank after the incident.

Communication gap

The survey also found a strong link between trust and how clearly banks explain their security measures. Among consumers who trust their bank, 85% said it communicates clearly about how it protects their account, compared with 51% of those who distrust it.

Consumers also appeared willing to accept tighter checks when given an explanation. Fourthline found that 83% said they understand why their bank asks them to authenticate themselves in the way it does, while 76% said they would accept extra steps for greater protection.

Even so, customers still want banks to explain those measures. Some 62% said they want their bank to tell them why extra steps are needed.

The country breakdown showed wide differences across Europe. The UK recorded the highest level of trust in banks to handle money securely, at 83%, while the Netherlands had the lowest, at 64%.

Dutch consumers were also the least likely to say their bank communicates clearly about account protection, at 62%, compared with 77% in Spain and 72% in Germany.

The Netherlands also stood out for higher scepticism. Almost one in four Dutch consumers, or 24%, said they distrust their bank with their money, compared with 4% in the UK.

Fraud pressure

The research comes amid wider concern about cyber risk and financial fraud in Europe. Banks are under pressure to strengthen security without creating unnecessary friction for customers using digital services.

For lenders and retail banks, the findings suggest that their response to fraud may matter as much as the event itself. Customers who lose access to funds or accounts may be more likely to judge their bank on the quality and clarity of that response.

Chris van Straeten, Co-Founder & Chief Risk Officer at Fourthline, said: "Banks maintain an incredibly strong position among consumers. Most place a high level of trust in them, even those who have experienced fraud, and the way a bank behaves after a fraud event can reinforce that trust. The instinct after a fraud event is to say as little as possible, but for someone facing missing funds or loss of account access, that silence reads as indifference and can really damage the relationship. A bank that explains what happened and what comes next has a greater chance of keeping customer trust. At Fourthline, we help financial institutions build checks that are rigorous, proportionate and easy to explain, so that security strengthens rather than tests trust."