Identity theft continues to surge, and the consequences have a devastating effect on its victims. A 2025 Javelin study found that fraud and scam losses reached $47 billion and affected 40 million people. Identity fraud alone accounted for $27 billion in losses, affecting 18 million victims, while scams resulted in $20 billion in losses, impacting 22 million victims.
Even with the advances in fraud prevention and detection, consumers face their biggest challenge after they’ve been targeted: undoing the damage. Fraud restoration is complex, time-consuming and emotionally draining.
The growing fraud risk
Fraud today is much more complex than a stolen credit card or an ATM PIN. Most of us have been exposed to fraud attempts countless times. It often begins with a text, an email or a fake login that looks legitimate. Consumers report receiving more suspicious messages than ever: 54% via text messages, 47% in emails and 44% through robocalls1.
Once identity theft occurs, restoration can take months, and that doesn’t account for the time consumers must spend figuring out a roadmap to recovery. Nearly half of identity theft victims (48%) reported unresolved issues up to 12 months after discovery, according to the Identity Theft Resource Center. Victims must freeze accounts, dispute fraudulent charges, file reports and rebuild their credit profiles, usually without clear guidance.
Consumers need support and education around identity restoration from their financial institution. Recent research indicates that 12% of victims don’t report fraud at all because they are unsure of what to do or who to contact. The critical next step is helping consumers recover.
Bridging the gap back to financial wellness
Offering fraud restoration support to consumers can be life changing. It provides a sense of relief and supports financial recovery without undue stress. Instead of the daunting task of navigating the aftermath alone, consumers have a trusted partner to shoulder the burden.
This inspired the partnership between SavvyMoney and Allstate Identity Protection services directly into the SavvyMoney Credit Score experience. Financial institutions can now offer their consumers built-in restoration services, with Allstate Identity Protection leading the recovery process in the event of suspected identity theft. This enhancement helps reduce stress, accelerate recovery, and empower consumers to regain control of their identity and financial well-being.
Benefits to financial institutions
Identity theft can easily erode a consumer’s trust in their financial partner, even when the institution isn’t at fault. Research shows that 60% of consumers expect their bank to resolve any loss from identity fraud3 and 38% of fraud victims close accounts due to poor resolution4.
By proactively offering fraud restoration, financial institutions show consumers that they’re committed to the entire financial journey, even when something goes wrong. Identity restoration in financial services can turn a potentially relationship-ending experience into a trust- and loyalty-building opportunity.
Providing fraud restoration helps:
- Retention during high-stress incidents. Restoration services keep consumers connected to their financial institutions during a vulnerable time, rather than seeking outside help.
- Increase trust and engagement. Consumers are more likely to use additional products and services when they know their financial partner prioritizes protection.
- Reduce churn and fraud-related disengagement. Supportive experiences during highly stressful situations help turn negative moments into opportunities to reinforce loyalty and commitment.
- Strengthen fraud strategy. Integrating restoration services provides insight into consumer risk patterns and post-fraud behavior.
Full spectrum protection
Financial institutions that partner with SavvyMoney offer numerous protections to consumers. By including fraud restoration (e.g., credit monitoring or transaction alerts) a circle of protection is created and gives consumers peace of mind knowing their financial security is supported from prevention to recovery. As fraud continues to proliferate, financial institutions have an opportunity to set a new standard for trust by establishing assurance.
References
1 & 2 Javelin Strategy and Research. (2025) Identity Fraud Study: Breaking Barriers to Innovation
3 & 4 Javelin Strategy and Research. (2022) Identity Fraud Study: The Virtual Battleground.