Countermeasures to Combat Cardholder Fraud
The world has become a global village with businesses being transacted around the globe. With the businesses carrying transactions around the globe, there’s been a need for the change of the payment methods being used. It is hard therefore to continue transacting businesses across the world using the barter trade payment methods hence the need to engage a different payment technique for businesses. To change the traditional methods of payment transactions, electronic payment methods were found to be the best.Nowadays, individuals also can use different electronic methods of payment if they purchased items from different shows both online and physical shops. Electronic payment methods include the use of smart cards, mobile payments, credit card, debit cards, checks to name but a few.
One challenge people are found with electronic payment is that it is hard to protect your money from the electronic devices. There are many cases that prove the insecurity of having electronic money as many cases report of credit card or debit card frauds. In many cases you can lose your card and also other personal details in the same bag meaning the person who finds the back can conduct transactions on your behalf without your knowledge. Other cardholder frauds can include skimming, account takeover, application frauds, checker to name but a few. There are many studies that have been done to help in combating the cardholder frauds. Discussed below are some of the ways of combating cardholder fraud.
The company that issues the card as a part to play in combating the cardholder fraud. The company issuing the card can take a step of ensuring that they come up with processors and other mechanisms that can detect the card frauds for example, the Andrew Phillips Cardflex processors.For example, there are software is that can be installed to ensure that it is possible to notice unusual patterns during transactions hence the raising a red flag.
Additionally, the merchant also will have a role to play in combating the cardholder frauds. One of the way as a merchant you can combat the cardholder fraud is by requesting for additional information such as the ZIP, pin and the card security code. As a merchant, it is important that you use reliable authentication such as the PayPal if indirectly and the MiiCard if directly.
It is upon you as a cardholder to report if the card is stolen or you lose it. Be checking your regular purchases and charges and any unauthorized transaction notification.