The 2025 Fourthline Fraud and Authentication Report

Fourthline surveyed 6000 consumers across six European markets (France, Germany, Italy, the Netherlands, Spain, and the UK), asking them about their experiences and attitudes relating to banks, fraud, KYC, and authentication.  In the first part of this report we explore our survey's findings on customer attitudes towards digital and traditional banks, and the differences between perceived and experienced risk of fraud. These insights offer valuable context when it comes to understanding how to deliver the best KYC and authentication processes. Stay tuned as we report on further findings from our survey – coming soon.  

Banks: trust and the digital–traditional divide

Digital-only banks experience faster growth, but traditional banks still dominate. A small percentage (8%) of consumers exclusively use digital-only banks, while over a quarter (27%) use both traditional banks and digital-only banks. Our data shows that older customers tend to prefer traditional banks. 74% of people aged 55 and over use only traditional banks, compared with just 5% using exclusively digital-only banks. It also shows that Europeans have a high level of trust in banks. They trust them to handle finances in a secure way and to have their best interests at heart.

Trust is earned not given

These positive findings regarding trust in banks reflect years of building relationships and looking after customer finances. They are also a tribute to the work of regulators, who ensure a fair and stable market. However, even the smallest erosion of trust can have severe consequences, both in terms of customer loyalty and regulatory scrutiny. As technology evolves and new threats emerge, banks must stay proactive in how they manage the risks that could affect this trust capital – such as fraud. 

Fraud: experiences, attitudes, concerns

A significant percentage of Europeans have been the victim of fraud, and an even greater percentage are worried about the speed at which fraud is evolving. Consumers are also concerned about the newer types of fraud that are emerging with AI. 

Older generations are more concerned about fraud than their younger counterparts. 62% of people aged 55 and over say they are worried about its sophistication, compared to just 46% of people aged 18–34. However, despite their comparative lack of concern, younger people are more likely to have been a victim of fraud (26%) than those aged 55 and over (14%). This counterintuitive difference is also reflected when we compare customers of digital-only banks and traditional banks. Customers of digital-only banks are more likely to have been victims of fraud, but only 47% of digital bank customers are worried about it, compared with 57% of traditional bank customers. The key takeaway here is that fraud is a concern for all age groups and consumer groups. 

Fraud is a big threat to customer relationships 

In addition to the immediate cost of supporting a customer through an incident of fraud, there is also a risk to the customer–bank relationship. According to a PYMNTS Intelligence report published in October 2024, most victims of fraud at least consider switching financial institutions after the incident is resolved and an estimated 30% actually do so. Check back as we release more findings from our survey and explore what they mean for providing customers in Europe with the best possible KYC and authentication processes.

“While overall trust in banks remains high, consumers are concerned about how fraud is evolving. It is not enough for banks to ensure that they maintain that level of trust, they must also communicate with their customers about how they are proactively protecting customers against fraud.” –Krik Gunning | Co-founder and CEO of Fourthline