FICO Survey Shows Americans Prepared to Be Dishonest to Meet Financial Needs

Global analytics software leader, FICO announced new findings from the 2025 Consumer Survey: Fraud, Identity and Digital Banking US regarding customers’ experience with application fraud and whether banks are meeting their needs. The survey found that up to a third of Americans report that lying on applications for credit is either acceptable in some circumstances or normal behavior. As the cost-of-living crisis worsens, banks must prioritize fraud protection to challenge the increasingly problematic issue of first-party fraud.

“Consumers are falsifying information in applications to gain credit, not understanding how much these so-called liar loans will stretch their finances and risk leaving them unable to repay or, even facing the consequences of committing fraud,” said Adam Davies, vice president of product management at FICO. “Banks are up against a constant challenge to prevent fraud and lend responsibly. While checks during applications may feel frustrating, they are there to protect the customer.”

While consumers may be willing to misrepresent information on credit applications when it serves their interests, they simultaneously expect robust fraud protection when they are potential victims.

According to the survey, nearly one in three consumers (32%) now rank fraud protection as their top priority when opening a new account — outpacing ease of use, value, or even customer service. 56% of participants ranked good fraud protection, a top three consideration when selecting a new account.

Perhaps because of heightened concern about identity theft, 75% of customers say they won’t abandon an application due to tougher identity checks — a shift that shows people are willing to take extra steps for the promise of stronger protection.

When opening a new account, customers ranked good fraud protection (32%) and ease of use (25%) as their top two needs. Customers want a streamlined and swift originations experience but also want to feel safe. Financial institutions need to strike a balance between good customer experience and security to satisfy customers.

Face scans are beginning to have a slight advantage with consumers

83% of customers ranked face scans as a good or excellent security method, surpassing other biometric security verification options such as fingerprints. When it comes to types of fraud risk, customers are most concerned about a fraudster using their stolen identity to open an account (33%) or having a credit/debit card stolen and used (21%).

“Application fraud is no longer just a bank problem — it’s personal,” said Davies. “Our survey indicates more than 32 million Americans have been victims of identity-based application fraud. This is about trust — and consumers expect banks to earn it.”

For more details and insights regarding the survey results, download the 2025 Consumer Survey: Fraud, Identity and Digital Banking US eBook. This survey was issued to 1,000 U.S. bank customers across age and income demographics in the West, Midwest, Northeast, and South regions.

As shown in the FICO Application Fraud Survey, financial institutions must fight first-party fraud and provide secure, user-friendly experiences in order to bolster customer trust.