For every $100 of credit card or debit card transactions, 4.46 cents were lost to global fraud, says California Trade Publication, the Nielson Report (Reuters, 2011).
Financial institutions worldwide have a multitude of data to protect, everything from the personal information of their customers to the account information and cards themselves. With the growth of online banking, the ability to sign up for credit cards online, and the growing amount of online transactions - the amount confidential data that has to be collected, stored and protected is constantly growing. One crack in the shield could mean a lot of valuable information falling into the wrong hands. With the total number of credit and debit card holders increasing worldwide since 2010, the amount of credit card fraud follows in its wake. Last year, total fraud losses were up a whole 10% since 2009, to $7.6 billion.
In response, banks in Europe and Asia have adopted stricter security measures to combat fraud, such as issuing cards that have computerized chips installed that require a pin. These “chip-and-pin” card systems make producing counterfeit credit and debit cards a lot more difficult. While the United States’ dependency on payment cards that carry data on magnetic strips makes card holders more susceptible to identity theft and fraud.
Asian financial institutions are also more likely to decline transactions that appear suspicious, which U.S. institutions, facing more business competition, are less likely to do because many of their customers carrying multiple credit cards (Reuters, 2011). The United States now accounts for 47% of fraud losses last year, a steady increase from the reported 46.5% in 2009. While the “chip and pin” solutions seems like a step in the right direction to combat counterfeit card production, the issue of identity theft goes much deeper. Full-lifecycle security measures to secure online data, ATM transactions and payment card information have to be in place in order to stay one step ahead of crime.
3VR provides banks with the ability to search video surveillance footage for a specific transaction or account number. Additionally, 3VR provides banks the ability to then use the facial surveillance footage from a potential perpetrator to find other transactions they may have performed. This allows banks to identify additional fraudulent transactions and turn over additional evidence to build stronger cases against criminals and organized crime rings. For further information on ATM/Teller transaction integration go here. For further information on 3VR VIP Facial Surveillance Essential Analytic go here.