Saturday, November 13, 2010

Credit Card Fraud Prevention And Detection


Will banks and credit card firms use the IP address as a way to detect and prevent fraud online?

Registering your devices as a way of fraud detection (the IP addresses of the devices).

When you make a purchase online you are asked for a credit card number and sometimes the CSC, Card Security Code,from the back. What would be interesting is, if the IP address was recorded by the seller site and sent to the financial payment provider to see if there is a match. When there is not a match, a higher level of security screening can be enabled. This would enable a customer to register their devices before making purchases to enable better fraud detection. This should prevent a false positive, which interrupts the customer unnecessarily.

The reason this comes up is, as of late, I’ve made a few online purchases with online merchants I’ve not done business with recently. AT&T, Carbonite and are a few of the services. After making a purchase with Joker, my phone rang and there was a cryptic message. Hung up and within a minute another call came across. The second one was clearer, but not clear enough. One of the purchases was listed as being from Alpharetta, GA for $25. It was not a charge I recognized as I have not been to or knowingly done any business with a firm in the location recently. Well, after logging in to my bank website, I saw a $25 charge from AT&T. Oh, that’s a legitimate charge I thought. Who knew they used Alpharetta, GA as their billing location. Time will tell if that charge is rejected and causes my AT&T account to be suspended.

No comments: