With the holiday shopping season upon us, yes even in September, credit and debit card transactions will begin to rise both in store and online. As the number of sales transactions increases, so does the risk of fraud. In fact, a 2012 survey conducted by myFICO stated 62 percent of consumers expressed a concern about fraud or identity theft during the holidays. Consumers have good reason to be concerned – once card information is stolen it is quickly used to rack up thousands of dollars in fraudulent charges. Time is of the essence in fraud notifications – and customers look to their card provider for protection.
Financial institutions often offer consumers zero-liability protection, leaving the issuing bank responsible for absorbing the loss of funds. With the increase in card fraud, issuing banks need to reduce their exposure to risk, accelerating fraud detection and quick resolution. Smart financial organizations are turning to cloud-based fraud management solutions for their contact centers, which allow them to:
- Quickly Identify Fraud: When a card issuer’s fraud-detection system or case management system flags unusual transactions, the institution often has no real means of determining whether the anomaly constitutes fraud. In many cases, only the cardholder knows for sure if a transaction is legitimate or fraudulent. To obtain that cardholder’s response as quickly as possible, the bank needs not just real-time monitoring, but have a proactive communications strategy in place to reach customers as soon as fraud is detected.
- Faster Response Rates: Consumers have high expectations for customer service but can be difficult to reach and are increasingly “on the go”. If a card issuer understands the preferred way to reach the cardholder, monthly statements via email, pin changes via outbound IVR, and fraud alerts via text message, will resolve fraud faster. Issuers need a solution that can reach the cardholder especially on their mobile devices to ensure quick responses and faster fraud resolution.
- Achieve Contact Center Effectiveness: Sending automated two-way interactive alerts to cardholders to notify them of the possibility of fraud not only nips fraudulent card activity in the bud quickly, but it also provides the added benefit of deflecting eventual inbound calls (that tie up agents time and increase expense) from upset and irate customers after they receive their credit card statement with a long listing of fraudulent charges. Cardholders need an automated channel to confirm the transaction is not fraudulent. If the case is fraudulent, the solution should quickly connect the cardholder to a fraud specialist to resolve the matter.
- Increase Customer Contact Points: Banks face a challenge in finding the right ways to proactively reach cardholders at any given moment. Out-dated or missing mobile phone and email address makes it difficult to proactively notify cardholders when suspicious activity has been detected, or if a card has been blocked. The consumer may not know the card has been blocked until attempting a transaction, giving rise to frustration, causing an inbound call, and dampening customer loyalty.
- Minimize Card Usage Disruption: Bringing cardholders into the fraud-detection process gives consumers greater control of their finances. When banks ask cardholders to verify unusual transactions they build trust and customer loyalty. In cases that do involve fraud, cardholders know why their cards have been deactivated and are not caught unaware and inconvenienced at the point of sale.
Efficiently communicating the threat of fraud plays an integral role in customer relationship management and loyalty. In the event of fraudulent activity, financial organizations need the ability to immediately contact cardholders using interactive, personalized communications to a customers preferred contact point.
To learn more about empowering your cardholders to address fraudulent card activity in real-time, read our whitepaper, State of Fraud Today.