Identity fraud among the world’s top 26
card issuers declined by more than 50 percent according to
research.
However, according to Javelin
Strategy and Research’s Sixth Annual Card Issuer’s Safety
Scorecard, fraud prevention and detection must continue to be
improved to combat new threats as criminals change methods.
Go deeper with GlobalData
The report rates the top 26 card issuers
against a benchmark of customer safety criteria essential to
prevent, detect and resolve fraud. It named Bank of America as best
in class, taking overall top honours for the fourth consecutive
year.
The analyst firm noted the majority of
legislatures in which the issuers operate are now in
compliance with so-called red flag rules, which require them to
alert consumers when an address change is made on their
account. Physical address changes have therefore been knocked off
the top spot as a method of taking over accounts.
But Javelin warned card issuers are now being
warned that criminals have now shifted their approach and have
now found ways to add a registered users to existing
accounts.
“While issuers excel in fraud resolution, they must focus more on
preventing fraud in the first place,” said Mary Monahan, a research
director at Javelin. “Security is the consumer’s top concern when
choosing a card and they look to their credit card company to
protect them.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“Consumers repeatedly indicate that they want
to work with card issuers to combat fraud,” said Robert Vamosi, a
Javelin risk and fraud analyst.
“Issuers can do their part by continuing to
educate consumers online about how to protect themselves against
fraud. They can also automatically enroll customers in
user-friendly alerts to notify them of potential fraudulent
activity or takeover attempts on their accounts or to their
personally identifying information.”
The scorecard criteria is based on Javelin’s annual Identity
fraud survey report and scores for each issuer are developed
through mystery shopping, compiling publicly-disclosed information
provided by each issuer, in-depth interviews with several security
professionals and expert Javelin industry analysis.
