Visa Europe sets trend with mobile location-based fraud detection
Avivah Litan of Gartner writes:
Visa Europe announced last week that it is contracting with ValidSoft to provide mobile location services that help banks detect fraud. We believe these services have great value when it comes to protecting payment accounts and preventing fraud, and that many more banks and card companies will adopt them once they see the value. The way they work is by tracking user locations via their mobile phones and comparing that to other transactions the user is conducting. For example, if a user’s phone is in England, but the user is simultaneously withdrawing cash from an ATM machine in Germany, that is cause for suspicion and will raise an alert.
Read more on Gartner.