PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Your Card Has Been Compromised, Now What?

Rachna Ahlawat by Rachna Ahlawat
October 16, 2017
in Industry Opinions
0
mobile card controls

digital safety concept padlock in electronic environment.

4
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Consumers Can Stop Fraud in its Tracks with Mobile Card Controls

The recent Equifax breach has rightfully frightened millions of customers – one of the most trusted organizations in the financial industry was attacked and had more than 100 million consumers’ personal data stolen. How can mobile card controls help?

News reports have been offering consumers advice on what to do, with the suggestions ranging from freezing credit to closely watching bank statements for the next few months. But financial institutions have a much more powerful weapon to fight data breaches. This weapon is putting fraud protection in the hands of consumers with mobile-based card controls. This creates safeguards for the bank and customer while mitigating the risk of a damaging impact from the breach.

The secret power behind mobile-based card controls is that by nature of the apps design and automation related to transaction alerts, the compromised information is useless in the hands of a criminal. From the debit and credit card side, financial institutions should provide solutions that allow their customers to stop fraud following an alert with just a couple of taps on their smartphones.

Mobile-based card controls offer a fundamental shift in how fraud is mitigated even if the hacker has compromised the card information. How this works is through defined controls, such as the card’s location, transaction filters, or channel filters (such as card-not-present or phone transactions). Transactions that fall outside the permitted filters trigger an immediate verification to the mobile device, enabling customers to immediately stop a fraudulent transaction before it begins. In addition, these apps can keep tabs of each and every transaction, allowing them to easily flag transaction allowed by the filters as fraudulent.

This method is both effective and useful due to the fact that most customers always carry their smartphone with them. By giving customers control of their own transactions, they are able to quickly and easily combat fraud without the risk of accruing more fraudulent charges or having criminal transactions go unnoticed.

Additionally, mobile card controls benefit the financial institution by simplifying the process of identifying fraud and contacting customers. One of the biggest roadblocks for fraud departments is actually getting a hold of their customers. Unless the customer’s contact information is fully up to date, the fraud department is in a constant scramble to get a hold of the customer to determine if charges are fraudulent or not. This typically results in shutting off access to the card regardless, which may end in the loss of a customer due to false negatives, resulting in erroneously shutting off their access to funds.

The Equifax breach will not be the last major data hack. Data breaches will continue to happen in the future at companies large and small. At some point in every person’s life, they will have their information compromised, but the extent of the impact varies from causing little harm to complete devastation.

When faced with a breach, it is important that financial institutions provide solutions that allow the fraud to be managed from the hands of the consumer. This allows the customers to act on the fraud instantly, while also building trust with their financial institution through these offerings.

It’s not a matter of if, it’s a matter of when the customer will be affected and how their institution can take the pain out of the ordeal.

Tags: CardFraud Risk and AnalyticsMobileOndot Systems
4
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Eco-Focused Payment Cards Help Pave the Way for a Sustainable Future

    Eco-Focused Payment Cards Help Pave the Way for a Sustainable Future

    October 4, 2023
    money-laundering, money laundering

    AI Can Alleviate Money-Laundering Frustrations

    October 3, 2023
    Online Grocery Sales Efforts Take A Giant (Stores) Step Forward

    Did Payments Innovation Kill Brick-and-Mortar?

    October 2, 2023
    open-banking Data-Sharing as a Solution to Cash Flow Issues standa

    Disjointed Open-Banking System in U.S. Leaves Opening for Permissioned Data Providers

    September 29, 2023
    FedNow

    FedNow Could Mean a Renaissance for Smaller Financial Institutions

    September 28, 2023
    Best Merchant Practices for Dealing with Supply Chain Disruption

    Nearly Half of Merchant Data is Probably Wrong. Here’s Why it Matters.

    September 27, 2023
    Mitigation of P2P Fraud Begins with Education

    Mitigation of P2P Fraud Begins with Education

    September 26, 2023
    digital payments

    Mass A2A Payment Adoption in The U.S. Contingent on Compelling USP

    September 25, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result