Data security is one of the largest threats facing consumers in today’s day and age. While nearly all credit card companies do not hold cardholders liable for fraudulent charges, it is still a major inconvenience to a credit card holder when their account is stolen, or worse if their identity is stolen.
In addition, credit card fraud cost credit card companies over $15 billion in 2015, and that number continues to rise. That expense ultimately gets passed on to the end consumer, resulting in higher fees and interest rates.
However it is not all a loss. There are several new trends aiming at making credit card transactions more secure.
Prior to even opening a credit card, credit card companies are looking for ways to reduce identify theft and increase security during the application process. Enhanced credit checking, identity verification systems, and dark web scanning are just a few of the numerous tools credit card companies are using at the time of application to verify they are issuing a card to the right individual.
Credit card comparison website LowCards.com, which works with the top credit card issuers across the country, urges consumers to make sure they utilize a trusted consumer comparison website to evaluate credit card offers, which will always direct consumers right to the proper, secure hyperlink right with the credit card issuer to apply for the card.
Chip Technology (EMV)
Chip cards have been around now for a few years, and you can expect them to become the norm in the near future. EMV chips are much more secure than magnetic strip transactions. When you pay by swiping your card, all of your information is transmitted across the payment network, which could relatively easily be hacked. With EMV technology, a dynamic payment code is generated, so if the system is hacked, the thieves will only receive a fairly useless dynamic payment code as opposed to your entire credit card account details.
Mobile wallets such as Google Pay, Samsung Pay, Apple Pay, and others, are similar to EMV technology in which a dynamic payment token is utilized instead of transmitting your card details. These are proving to be a fantastic solution not only for in person transactions but also for online purchases.
Many of today’s top credit cards are encouraging consumers to utilize mobile wallets for added convenience and security.
New Verification Technology
Technology such as American Express SafeKey, Verifi’s 3D secure, and other similar programs are popping up to help reduce fraud and retailer liability. These programs analyze purchases and assign a risk value to them, and if the transaction is deemed “high risk”, the transaction will popup on the cardholder’s mobile device for verification before it is approved.
Consumer Tracking Options
Credit card companies are giving consumers more options to proactively monitor their accounts. Mobile app alerts, text alerts, apps to “freeze” your card, and other AI driven monitoring services are helping alert consumers sooner when their account is potentially compromised, resulting in less time for a would be credit card thief to run up thousands of dollars in charges.
These new trends are helping protect consumers, retailers, and credit card companies from the added liability and cost associated with fraud in today’s digital age. Be on the lookout as this is an ever evolving field with new technology and ideas being tested and rolled out every year.
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Founder Dinis Guarda
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