According to the Nilson Report, it is being anticipated that by the year 2020, plastic card fraud will grow by 45% and will attain a figure that can amount to as much as USD$31.67 billion. There are various means by which scam artists victimize people either by manipulating data that they collect from POS or Point-of-sale or from ATM outlets.
Several instances of cyber attacks and plastic card related fraud have been reported as a result of which contact details, passwords, and vital information related to financial status of millions have been compromised. And interestingly, as per a study that was conducted by Newcastle University, cyber attackers can decipher or decode security codes and sensitive details of credit cards and debit cards in not more than 6 seconds.
Phishing is another means by which fraud related to credit and debit cards is carried out. In this article, let us find out how you can curb the incidence of these fraudulent activities by adopting various technological methods and developing awareness. So, read on for more information on the same in the paragraphs that follow.
Tips to Prevent Credit Card Fraud Technology Driven Methods
Check out the tips given below.
Educate Yourself
It is important that at the enterprise level, you educate the members from time to time about the possibilities of fraud related to plastic cards and the consequences of the same. It is crucial to remain in constant touch with the members of the credit union.
Most importantly, it is your priority to win the trust of the members of the credit union and this is achieved by frequent communication through newsletters, personally, and websites. Keep tab on any high account transaction that appears suspicious.
Let us say, you are trying to develop a credit card fraud prevention strategy, among members of the credit union, how will you go about it?
Service Architecture
With the help of this method, you can exercise better control over the various levels of security prominently among different business domains. These methods are useful in validating clients’ credit card information. This allows companies or businesses to monitor data flow across various network systems prevailing within the company perimeter.
Technology Update
It is even more important to stay abreast with the latest technology that can avert credit card related fraud. Adopting chip technology related to EMV or Europay, MasterCard, and Visa is a better way to minimize fraud pertaining to plastic cards.
It has been proved to be effective in cases where card-present fraud activities are taken into account. You might as well replace the existing cards of your customers with chip technology enabled cards, if you still have not done the same. By doing so, you can prevent transactions that do not provide CVV or CVC codes.
Newer Technologies
These days so called “predictive scoring systems or models” have proved to be effective in detecting credit card fraudulent activities. Also, popular is alert management systems that can help you in identifying transactions that are suspicious in nature.
Issuing Instant cards
It has been observed that issuing instant cards has not only gone down very well with clients but it offers immense satisfaction as far as customer support measures are concerned. Not only that since the card gets activated promptly and is ready to use, it can do away with the hazards that are related to risks associated with cards that have to be mailed to clients.
It is not just technology that can prevent plastic card frauds, but careful and round the clock monitoring is even more important on a regular basis.
