Introduce New Features to Prevent Credit Card Misuse

According to the data of various informational resources, for the time being, there are more than 5 mlrd credit cards are now engaged in the world. The greatest part of the world’s emissions belongs to the leading credit card manufacturers and such international payment systems as mastercard (1,8 mlrd cards), visa (1,6 mlrd cards) and China Union Pay (1 mlrd cards). So, the global emissions credit card growth has stabilized as 20 % for the last three years. What’s more the annual credit card usage turnover nowadays comprises about 10 mlrd us dollars.
And traditionally, the Internet remains the most dangerous credit card usage zone and the riskiest money transfer environment. Thus, according to the analytical organizations like Internet Fraud Prevention Advisory Council, from 8% to 40 % bank card transactions, notwithstanding the company category, are considered to be potentially fraudulent. So, if your business is somehow related to the Internet, there are certain features to prevent the client’s credit card misuse that should be implemented.

According to Javelin research:
«Even still, more than 15 million Americans fell victim to identity fraud last year at a cost of $16 billion in losses. That’s up 18% year over year and the highest it’s ever been since Javelin started keeping track 14 years ago.»
They also picked the most widely spread cases of telecommunication fraud:
1. Sniffing
2. Phishing
3. Virus frauds, etc.
Despite the fact that it’s impossible to get totally protected against the fraudsters, It’s possible to reduce the odds of being scammed via your bank credit card to the minimum. For that a lot of companies introduce such feature as fraud monitoring.
Since in general meaning fraud is an attempt of unauthorized access to the users personal data in any sphere of information technologies, telecommunication solutions are also under the risk.
Most often the objects of the fraud are banking payment systems data, e-payment wallets, mobile accounts, though fraud may actually be any personal data leak, that leads to financial loss of the victim and enrichment of the fraudsters.
So, in order to mitigate the aftermath, if any, it’s better to introduce fraud monitoring features to your working business website.

How it Works?
When the user makes a payment or initiates any money transfer on the website, the data automatically gets into the fraud monitoring system. Apart from the current payment data, the anti- fraud system keeps a profile of an average online payer of a certain online banking payment system or an Internet shop.
Anti-fraud system working algorithms allow analyzing and evaluating a range of factors, the most important of which are the following:
- where the money came from,
- the bank where the card was made,
- how much money is sent,
- how many times the money is transferred from the card,
- the bank card payment history,
- average player profile, etc.
Based on the following and other data, transaction undergoes the primary analysis. The initial examination is made on the basis of security filters, that are no more no less but a set of allowing and banning rules. These filters are aimed at checking the users and credit card details. The final objective of using such a system is the user (card holder) confirmation, making money transfers via the website.
On the basis of the analysis made, the data may be labeled with a corresponding marker: green — low fraud ability, yellow — higher than medium risk, where money transferred need a particular attention and red — high fraud suspicion. For the money transfer operations, labeled as red, a special card holder authentication may be required. Such transaction is more likely to be transferred to a further authorization with the help of a specific safety protocol, used for the bank credit/debit card holder authorization during the money transfer operations.

A traditional authentication procedure is done for the red labeled operations with the help of the original card holder documents: credit card and ID, scanned and sent to security services of the website. After sending the corresponding documents, which are further directed to the bank processing center, the labels are usually changed from red to green.
Fraud monitoring system usually helps with decreasing the possibilities of being cheated while using website services and sending money via website of certain business online. Analyzing transactions, processed with IPSP (Internet Payment Service Provider License), is more likely to increase the level of security during making transactions on the business websites and decrease the fraud probabilities at any financial actions, typical to e-commerce and other services.
The only disadvantage of such system usage is the fact that the card holders cannot add to the existing security filters. Users’ adding to the system written rules is impossible because it can interfere with the system work and increase the financial risks. Users can only be entrusted to add certain security filtration rules based on:
- average check
- specifications of the products or services (virtual or physical)
- the owner location
- transaction time
- phone numbers used for transactions and so on.
In this case, the banks add manual filter setting button to the menu, allowing the users to edit or add certain parameters manually in their personal cabinets.
Obviously, when you locate your business online, you should take care of financial security and personal data protection of your users in order to provide and guarantee the top-notch quality solutions. In telecommunication (mass SMS messaging, HLR, VoIP, etc.) this is also a must. To prevent credit card misuse means to take care of your users, partners, and the business as a whole.
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