US account holders more likely to switch banks following fraud Account holders in the US are more likely to switch banks in the aftermath of fraud, according to a new study. Researchers at Carnegie Mellon University found that people who had their information compromised were more likely to terminate their relationship with the bank within six months of a fraudulent event, even if they …
So a theoretical maximum of 600 users out of 500,000 would switch banks due to a security issue?
Yep, that's going to drive a lot of security spending. Not.
The actual numerical difference is almost certainly much smaller since some number would have switched anyway for various reasons (moving, death, promotions from other banks, bad customer service/experiences etc).
There are plenty of banks and credit unions in the US so switching accounts is not a major pain for most. What would be more interesting is how non customers react to the bank scandals and fraud. Wells Fargo has been in the news for internal identity theft of customers' info.
Switching banks is not an issue however switching attitudes still remains a problem. Banks are reluctant to show how their services were compromised and what ever happens the banks good or bad will come up smelling of poo. It does make any scence changing banks unless the are truly awful if you do not examine your procedures on how access your account.
I am old enough to have switched to a better bank from one that just didn't give a damn not once, but three times. In each case, the conscientious bank was within five years taken over by one of the "hey, it's our money now" banks. Seems like it's a lot more profitable to not care, and those excess earnings have to get used for something. OK, a lot go to bonuses, but a lot go toward buying and wrecking good companies. Just like in telecom and IT.
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