Fraud Victims Still Trust Banks Despite Rising Threats, Fourthline Research Reveals

European consumer trust in banks remains resilient despite a rise in fraud, but new research indicates that this confidence is beginning to erode. For fintech leaders, the data highlights that transparent communication and rigorous security protocols are now the primary drivers of customer retention, even after a significant security breach has occurred.

What was announced

Fourthline has released the second edition of its Fraud and Authentication Report, which surveyed 6,000 adults across the UK, France, Germany, Spain, Italy, and the Netherlands. The findings show that 73% of Europeans trust their bank to handle money securely. However, this represents a 9% decline from 2025, when trust stood at 82%. Distrust has also risen from 9% in 2025 to 12% in 2026.

The report emphasizes the link between clear communication and consumer confidence. Among those who trust their bank, 85% report that the institution communicates clearly about account protection, whereas only 51% of those who distrust their bank say the same. Consumers appear increasingly willing to trade convenience for security; 76% would accept extra authentication steps for more protection, and 83% understand why banks require specific authentication methods. Although 62% want an explanation for why extra steps are needed, this was the lowest level of agreement among the survey's security statements.

Geographically, the UK leads in consumer confidence with 83% trust and only 4% distrust. In contrast, the Netherlands reports the lowest trust at 64%, with nearly one in four (24%) consumers expressing distrust. Dutch consumers are also the least likely to feel their bank communicates clearly about security measures. Notably, 72% of victims of financial or mortgage fraud remained with their bank after the incident, suggesting that post-fraud handling is critical for loyalty.

"Banks maintain an incredibly strong position amongst 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 it can really damage the relationship. A bank that explains what happened and what’s 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."

Chris van Straeten, Co-Founder & Chief Risk Officer at Fourthline

The companies involved

Fourthline is a European identity verification provider that focuses on providing financial institutions with the tools necessary for rigorous and proportionate security checks. The company has recently undergone significant structural changes to solidify its position in the global market. In July 2026, Fourthline and Veridas announced a merger intended to create a global identity fraud powerhouse, combining their respective expertise in authentication and verification technologies.

The leadership team at Fourthline was further bolstered in March 2026 with the appointment of Paul Stoddart as CEO, tasked with leading the company through its next phase of growth. Additionally, Fourthline has achieved status as a Qualified Trust Service Provider (QTSP) within the European Union. This designation allows the company to offer digital trust services and SMS-free signatures, expanding its utility beyond basic KYC requirements into broader digital identity and secure transaction management. As an identity specialist, Fourthline operates at the intersection of regulatory compliance and user experience, helping banks navigate the increasing complexity of financial crime across multiple European jurisdictions.

What FF News has reported before

FF News has tracked Fourthline’s expanding influence in the identity and security sector throughout 2026. In October, the publication covered research showing that 78% of Europeans Prioritise Financial Safety Over Banking Speed, Fourthline Research Finds, a sentiment echoed in the latest report’s findings on authentication steps. Earlier in the year, we reported on the company’s regulatory milestones, including when Fourthline Achieves EU QTSP Status to Revolutionize Digital Trust and SMS-Free Signatures. The publication also covered major corporate shifts, such as when Fourthline and Veridas to Merge, Creating a Global Identity Fraud Powerhouse and the leadership transition when Fourthline Appoints Paul Stoddart as CEO to Lead Next Phase of Growth.

What this means

The steady decline in consumer trust—dropping nearly ten percentage points in a single year—should serve as a warning to the traditional banking sector. While banks still enjoy a "trust premium" compared to other financial services, the rise of sophisticated fraud is beginning to chip away at this historical advantage. The data suggests that the industry is moving toward a model where security is no longer a silent back-end function but a front-facing customer service priority. Banks that fail to articulate their security measures or remain opaque during fraud recovery are under the most pressure. The open question for the sector is whether this trust can be sustained as AI-driven social engineering makes fraud harder to explain to the average consumer.