3 ways we're fighting fraud
posted by Mike Burke on Wednesday, May 29, 2019 in SHAZAM Blog
When talking to financial institutions the one issue that always comes up as a huge pain point is fraud. Fraud is a multi-billion industry in the United States. I say industry because that’s what it is. For the most part, people perpetrating these crimes aren’t operating alone. Many times the fraud is carried out by organized criminal groups.
The size and scale of the organizations behind fraud demand a response that is comprehensive. While the technologies to fight fraud continue to improve, so do the tactics fraudsters use. It’s an ongoing battle — that’s why at SHAZAM we’ve taken a more holistic, broader approach to fighting fraud.
Advocating for stronger penalties
Fraudsters don’t operate in just one community or one state. Many times, a type of fraud will move from one region of the country to another, like a malignant wave. For that reason, we’ve engaged policymakers at both the state and federal levels to develop an overarching set of security standards. We believe mutually agreed upon, third party standards will lead to stronger user authentication and increased innovation in security technology. We’ve also helped our state association partners craft stronger penalties for crimes like skimming and card cloning so criminals know there will be consequences if they’re caught.
Building communities against fraud
Penalties and policies are only good if the communities they protect are educated. Across the country SHAZAM is partnering with financial institutions, prosecutors and law enforcement to share information and educate. We’ve developed curriculum to teach law enforcement how to spot fraud, what kind of evidence they need to convict and how to partner with our financial institutions to share compromised card information. SHAZAM financial institutions are leading the way in their own communities by inviting SHAZAM experts to educate local businesses on how to keep cardholder information safe.
Finally, we know one of the best tools in the fight against fraud is educated and aware cardholders. That’s why we’re providing our institutions with simple information on what to look for when using a card at an ATM, inside a business or at an automated fuel pump. This effort multiplies the number of eyes looking for signs of compromise.
The fight against fraud requires collaboration. No one party is responsible for securing a transaction. All the players, from merchants to card-issuing financial institutions, are paying a high a price for fraud. By engaging everyone, including cardholders and elected officials, SHAZAM is working to take the fight to the fraudsters.
SHAZAM, Inc. and ITS, Inc. provide this blog for general informational purposes only. Our blog may be shared by a direct link wherein the content remains as originally presented and has not been altered. SHAZAM, Inc. and ITS, Inc. assume no responsibility for errors or omissions in the contents on the blog. By using this blog, reader agrees that the information published does not constitute nor is a substitute for legal advice which should only be sought from a qualified, licensed attorney.
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