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The following article originally appeared in Great Lakes Banker Magazine.

As our payments association works closely with financial institutions across the Midwest and collaborates with national organizations focused on payments, fraud and risk, I’ve seen firsthand how rapidly the conversation around cybersecurity has changed.

A few years ago, cybersecurity was often viewed primarily as an IT function or compliance obligation. Today, it sits at the center of consumer trust. And for Midwestern bankers, that shift presents both a challenge and a tremendous opportunity.

Recent research from the American Bankers Association confirms what many of us are already seeing in the industry: consumers trust banks more than any other sector to protect them from fraud. In the ABA’s 2026 fraud survey conducted by Morning Consult, 45% of consumers said banks are the organizations they trust most to safeguard them from scams and fraudulent activity — far ahead of Fintech companies and social media platforms. 

Cybersecurity has become a business issue because fraud increasingly shapes customer behavior. Consumers don't separate fraud prevention from customer service—they view both as part of the overall banking experience. A strong security program can strengthen confidence in digital banking adoption, while a poor fraud experience can undermine years of relationship building. As more banking interactions move online, every authentication prompt, fraud alert and security communication becomes another opportunity to reinforce, or erode, customer confidence.

And, while financial institutions continue to invest heavily in technology, many successful scams never involve a compromised banking system at all. Instead, criminals manipulate customers into authorizing payments themselves through social engineering. According to the FBI's Internet Crime Complaint Center (IC3), Americans reported over $16 billion in cybercrime losses in 2025, with phishing, business email compromise and investment scams among the largest categories. That reality makes education one of the most cost-effective fraud controls available. Regular scam awareness campaigns, timely fraud alerts and practical examples help customers recognize suspicious activity before money leaves their accounts. 

In an era where consumers are constantly being targeted by phishing attempts, fake text messages, account takeover schemes and AI-driven scams, people are turning to their banks for protection and reassurance. For Midwestern financial institutions, this is where relationship banking becomes a real competitive advantage.

Community banks and regional institutions across our region have always succeeded because they know their customers. But today, those relationships are being tested in digital spaces just as much as inside the branch. Consumers now judge trust not only by personal interactions, but by how effectively their bank protects them from fraud. Customers notice it when fraud alerts arrive quickly. They notice when notice when suspicious transactions are identified and addressed before losses occur. They notice when digital banking tools feel secure and reliable. Most importantly, they notice when their bank communicates proactively.

The ABA survey found that 96% of consumers who received fraud alerts from their bank found them valuable. More than half had received alerts regarding suspicious activity.  That tells us something important: fraud prevention is no longer just operational protection. It is customer engagement. Every fraud alert, educational campaign and security conversation reinforces trust.

And here’s why that matters strategically for Midwestern bankers. Large national institutions may have bigger budgets. Fintechs may offer slick user experiences. But community and regional banks still hold something incredibly valuable: credibility.

Consumers still associate banks with stability, accountability and security. In fact, the same ABA research found that 72% of consumers believe banks do more than other industries to protect them from fraud. That gives Midwestern institutions an opening to lead.

We can no longer afford to treat cybersecurity as something customers should never see or hear about. If consumers already trust banks most, we should reinforce that trust intentionally by:

• Talking openly about fraud prevention efforts
• Investing in employee education
• Communicating emerging scam trends to customers
• Participating in industry collaboration groups
• Sharing fraud intelligence across the financial ecosystem
• Making cybersecurity part of the institution’s brand promise

Building consumer trust starts inside the institution. Every employee, from frontline tellers and call center representatives to commercial lenders and executives, plays a role in protecting customers. Criminals frequently target employees through phishing emails, impersonation attempts and business email compromise schemes because the human element continues to play a role in the majority of successful cyber incidents. Regular training, simulated phishing exercises and clearly defined escalation procedures help create a security culture where employees recognize suspicious activity and know exactly how to respond.

At conferences and fraud forums across the country, one message consistently comes through loud and clear: fraudsters collaborate extremely well. Financial institutions must do the same. The organizations making the biggest impact are the ones building partnerships, engaging with payments associations, participating in information-sharing networks and staying connected to broader industry conversations.

That is especially important here in the Midwest, where many institutions operate with leaner teams and tighter budgets than national banks. Midwest banks have a great opportunity to leverage their strength by staying informed, staying connected and staying proactive. Because trust drives growth. And, when customers trust their financial institution:

• They stay longer
• They adopt more digital services
• They deepen relationships
• They refer friends and family
• They are more likely to remain loyal after a fraud event

Industry research continues to show that organizations with mature incident response capabilities and well-tested security processes experience significantly lower breach costs and recover more quickly from cyber incidents. According to IBM's annual Cost of a Data Breach Report, organizations that extensively use AI and automation, along with those that maintain and regularly test incident response plans, consistently experience significantly lower breach costs than organizations without those capabilities. While technology remains essential, the report also reinforces that preparation, employee readiness and coordinated response planning remain some of the strongest differentiators between organizations that successfully contain cyber incidents and those that suffer prolonged operational, financial and reputational damage. 

That is why cybersecurity should not be framed solely as a defensive expense. It is a strategic investment in customer loyalty, institutional reputation and long-term competitiveness. The institutions that will stand out in the years ahead will not simply be the ones with the newest technology. They will be the organizations that combine strong security with strong relationships.

That has always been the Midwest’s strength and now is the time to build on it.

Education Strengthens Consumer Trust

As fraud threats continue to evolve, education remains one of the most effective risk mitigation strategies. Open to all financial institutions, EPCOR's Did You Know video series can be easily shared with your employees, customers and your community. These short, expert-driven videos make complex payments fraud topics easy to understand and can be incorporated into staff training, customer communications, social media and community outreach. Visit https://epcor.org/Education/Resources/Did-You-Know to learn more.

Source: Great Lakes Banker Magazine

Join EPCOR and NEACH virtually September 22–23 for the End-User Payments Fraud Symposium, where industry experts will share actionable guidance on today's biggest fraud threats, including credit push fraud, internal fraud, check fraud, first-party fraud and emerging payment risks. Plus, your registration includes the opportunity to invite your business clients/members at no additional cost!