Mobile phones used to cut overseas card fraud
Cutting credit-card fraud by checking that the location of a card transaction matches that of the card holder's mobile phone.
ValidSoft says its VALid-POS software helps reduce fraudulent transactions made with the card present, cuts the number of times that legitimate transactions are blocked, and reduces the cost of resolving potentially anomalous transactions.
The company says that because potentially fraudulent transactions are detected using risk-analysis software working with limited information, nine out of ten transactions declined worldwide are actually legitimate.
“VALid-POS, using real-time telecommunications intelligence, can fundamentally alter how card-present fraud is managed through its unparalleled accuracy in detecting fraudulent transactions and, by definition, recognising non-fraudulent transactions,” said Pat Carroll, CEO, ValidSoft.
ValidSoft claims that, by checking whether a user's phone is in the same place as the credit card making the transaction, its software can cut the number of transactions that are wrongly declined by up to 95%. This enables banks to check more transactions, and look more closely at those flagged as potentially fraudulent.
In some cases, this means that a check to resolve whether or not a card is being mis-used can be made while the customer is still at the point of sale so trapping genuine fraud cases more effectively.