Fraud Risk Management, Fraud Detection System, Reduce Fraud Risk
Locate the Credit Card User and Prevent Fraud
Card fraud is the #1 fear of Americans in the midst of the global financial crisis.
This fear is not without reason. The Nielsen Report projects credit card fraud to exceed $10 billion by 2015. According to Javelin Research's "Identity Fraud Survey Report," 11 million (8%) customers experience fraud, with identity theft up 12% this year. This costs time and money. It takes about 21 hours to resolve a claim and, even worse, 65% of fraud goes undetected.
Locaid can help. Using a customer’s location to determine whether a transaction is fraudulent creates fewer false positives that can cost the financial institution time, money, and customer good will. by using the customer’s cell phone location to determine if the card is where the customer is. Locaid can identify the location of subscribers’ devices on all major carrier mobile networks. It doesn’t matter if the device is indoors or outdoors, GPS-enabled or not, a smart phone running apps or a feature phone that isn’t. We can find it.
How does it work?
- The customer opts-in to the program to allow the financial institution to use their location as part of the fraud determination algorithm. That’s all they have to do.
- When the customer uses the card, the financial institution checks to see if their cell phone is near the card.
- If the phone is with the card, it’s likely to be a good transaction.
- If the phone is in Ohio, but the card is being used in China, it might be a cause for concern. That information is added to the fraud determination algorithm to see if the transaction might be fraudulent.
- If the transaction is deemed suspect, then the financial institution can ask for more information or deny the transaction.