American Express (Amex) and Visa have decided to beef up their security processes for contactless transactions to protect users against fraud on lost or stolen contactless cards following card cancellation.
The reviews of security systems by both Visa and Amex comes in the backdrop of the UK’s Financial Conduct Authority (FCA) calls for banks to boost the processes they undergo when a customer reports a stolen contactless card.
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The FCA said that the existing security processes is prone to be misused by fraudsters when a customer reports a stolen or lost contactless card.
Furthermore, FCA has embarked on a number of measures it plans to undertake in order to tighten the processes banks undergo when a customer reports a stolen contactless card.
The measures include: removing the dependency on customers to identify fraudulent transactions, boosting customer communications at the time of cancellation and giving clarity to customers on the clearing times for contactless payments.
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By GlobalData
