Fighting fraud: an inside-out approach
posted by Liz Little on Wednesday, July 29, 2020 in SHAZAM Blog
Fraud continues to be a major risk and a serious pain point for financial institutions. It’s a dark, relentless and multibillion-dollar industry in the U.S., threatening your cardholders and you.
While the technologies to fight fraud are improving, so are the fraudsters. Today’s fraudsters aren’t amateur hackers. Fraud is being carried out by organized criminal groups, domestic and foreign.
Fighting fraud is an ongoing battle, and it’s one we must fight on several fronts. SHAZAM advocates a more holistic and layered approach, starting inside and working out into the community. If we do this together, we’ll be miles — and dollars — ahead.
Top 4 ways to holistically fight fraud
Look inside your own walls
- Review and tune your daily limit settings regularly
- Use artificial intelligence to help your financial institution detect and block fraud
- Tell cardholders how to spot a skimmer situation at the ATM or fuel pump
- Allow cardholders to set their own alerts or blocks
- Remind your accountholders of best practices when you send out a new card, include clear activation instructions
Building community networks against fraud
- Create a community of fraud fighters
- Host a community fraud forum
- Tap into your state and national associations
Along with SHAZAM, engage and advocate for overarching security changes with policymakers at the state and federal levels
- Advocate for changes that will lead to an overarching set of security standards
- SHAZAM has consulted with state lawmakers nationwide to help craft legislation with stiff penalties for crimes like skimming and card cloning
- social media
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