Artificial Intelligence
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Financial institutions

are creating more advanced forms of fraud protection systems, often set up to capture any transaction that seems unusual or out of the ordinary. This can happen in several different forms: - Location-based security: When a transaction is executed, the financial institution checks to make sure the purchase is made in the same geographic location as the cardholder. - Device-location technology: Uses GPS capabilities to verify when a cardholder is making the transaction in addition to the numerical code. - Behavior-pattern analysis: Predictive analytics monitoring card account activity such as transaction size, merchant category, and others. - Nuanced response structures: Adding in security features that require text message or email to respond, which means the user must append a leniency to confirm the transaction. In cases of attempted fraud, people can spot purchases they have made which signal fraud may be occurring. This step is becoming easier with increased mobile device usage and text message alerts. - Adding additional layers of security: Financial institutions now must comply with the EMV smart card standard, a system in which the credit card is embedded with a chip and transactions are verified via the credit card issuer with the consumer after each point-of-sale exchange. Does your providers use any of these security layers to prevent fraud? PREVIOUSThe Pros and Cons of Debit vs. Credit Cards NEXTHow a Credit Card Can Improve Your Credit Score