Your cardholders are worried about fraud. Are you doing enough?
by John Winstel
Card fraud is growing at a record pace, and your cardholders are concerned. According to a recent Vantiv/Socratic Technologies study, 48 percent of consumers have experienced card fraud. In addition, an Aite Group study found that nearly half of consumers claimed an identity theft experience caused them to switch their financial institution.
What can your FI do to ease your cardholders’ minds?
Educating your cardholders on how they can help protect themselves from fraud is one way to help. By providing simple, practical solutions, you will put control back in their hands, and deputize them as members of your fraud security team.
Try sprinkling a few of these fraud-prevention tips in with your regular cardholder communications:
- Review your card and bank account statements regularly. Don’t wait until the end of the month to check your statements for unusual activity. Log in at least weekly to your accounts to verify your transactions.
- Shred all sensitive documents. Get in the habit of shredding your banking and card statements, insurance binders, and unsolicited loan offers. Better yet, switch to e-statements to eliminate wasteful and unsecure paper documents and discourage dumpster-divers.
- Tread carefully with public Wi-Fi. Not all Internet access is created equal. Public Wi-Fi networks, such as those found in coffee shops and restaurants are notoriously unsecure. In fact, according to Kaspersky Lab, 39 percent of public Wi-Fi networks in the U.S. are unsecured. Never access confidential financial or other password-protected sites over open networks.
- Watch out for ATM card skimming devices. ATM skimming devices designed to scrape personal and account information off card magnetic stripes have been around for decades. Now, fraudsters are deploying a newer technique known as “shimming” to attack EMV chip-enabled cards. Cardholders should check all ATMs and point-of-sale readers for such devices prior to use.
- Password-protect your smartphone. If a phone is lost or stolen, a complex password may be the cardholder’s last line of defense against handing over a treasure trove of personal and financial data to a fraudster. Password protection is especially critical when travelling domestically or overseas.
A strong educational offense may be your FI’s best defense against card fraud. And it will help your cardholders sleep better at night.