Despite some controversy surrounding the recently completed Tokyo Olympic Games against the backdrop of Covid-19, the games were an important opportunity for the global community. We were able to forget the struggles of the last eighteen months and cheer athletic excellence, while also getting a glimpse at the post-Covid world just over the horizon.
Of course, as we look to reopen travel, we’re also reminded that issuers must be proactive to protect themselves and their customers.
Travellers will encounter difficult situations sometimes. They will lose their cards, have insufficient funds, or even see suspicious transactions appear on their statements during travels. This is where antifraud knowledge, for issuers and customers, can come into play.
Customer Education: Points of Communication
In a fast-paced tech world, we can no longer rely solely on static fraud prevention technologies. More than ever, we must ensure that our customers are well educated on card usage and best practices for fraud defence.
Educating customers is one of the best defences to help fight and prevent fraud. Showing your customers what to look out for, and also helping them to become confident card users, are both key to this process. So, what would customers need to know?
First, the customer needs to communicate a little more. If a customer can notify issuers about upcoming travels and trips, the issuer can ensure the start of their trips runs smoothly regarding card usage and point-of-sale problems. This is because the card can be marked up correctly, to be used overseas. This also makes for a great opportunity to update those all-important account details. Updating a telephone number so you can reach your customer during their travels, for example, is very important.
You should also provide customers with details on what to do if a card gets lost or stolen. For a customer, having this information before a situation occurs helps them to maintain a degree of calm. The cardholder would also know precisely what to do at the right time. Make sure you also give them the correct numbers to call and details of what times the lines are open.
Customer Education: Responsible Card
It’s a good idea to have a conversation with customers about setting up automatic bill payments before they embark on their travels. This will help ensure they have sufficient funds in their accounts and don’t come up short during desperate times. At the same time, you can also emphasize the importance of checking one’s payment history and statements during travel.
With the ease of use technology presents, a cardholder can check their balance and be done at the press of a button. Regular balance checks will help spot any unauthorised or suspicious activity. They should also take advantage of active alert services to track any activities while away.
One more thing: remind customers of any withdrawal limits and charges. This helps avoid unnecessary payment declines. The best thing about these reminders and educational conversations is that this advice can all be provided at one time. Whether it’s a customer newsletter, a social media post, or a digital portal, you should repeatedly promote all these educational resources to ensure they sink in.
What about Fraud Prevention Tools?
It is always recommended that issuers assess their internal processes on a regular basis. This will help with a speedy reaction to any incident which may occur.
A key area of planning would be to know preferred payment methods in different countries. This can then help the customer decide how to pay, based on the knowledge you can give them. In Japan, for example, it could be worth taking multiple physical cards, as more than 85% of point-of-sale terminals are EMV-compatible. This offers an extra layer of security when using chip and pin.
Make sure all contact information is up to date. You should always be making moves to keep the information you have current. Trying to do this in one hit is a big job; we can collate this information over the phone, but we also have a lot of technology that can help with this. Apps, e-mails, letters, and even online banking are all examples. We know that people are not always proactive, but giving them multiple channels through which to respond and reach out can remove barriers.
Also, ensure your card verification processes are all in place and updated regularly to stay on top of that fraud wave.
The Stand-In Process (STIP)
Something else that would greatly help with fraud reduction is the Stand-In Process (STIP). STIP allows you to set parameters, before events occur, where you can adjust activity limits, and card data verification strategies.
At peak times, you may want to adjust your verification standards. STIP is a great asset to use during big events or holidays seasons worldwide.
STIP also gives you access to real time decision making when authorizing transactions. This would allow you to determine whether or not to approve the transaction based on the risk score. There is more information on this available at the official Visa site.
Implement an Antifraud Training Program
Putting a fool-proof plan in place is essential to prevent fraud. You should keep in mind to set time aside for their yearly antifraud assessments and consider what they have in place already. You should examine what works, what doesn’t work, and what could be improved upon. All banks need to think about ways to stay ahead of the game when planning.
- Getting to know your customers; who are they? How do they prefer to make their payments?
- What are the easiest ways to update any essential details?
- What do you have in place to help educate your customer?
- What will success look like to you? How will you track your success regarding fraud prevention?
- When are you going to review what works, and what doesn’t work?
At Fi911, we take fraud very seriously. We understand that it’s not just about the impactful cost to businesses or a customer. It’s also about making customers feel safe so they come back and trust you, time and time again.
Because we understand this, we are here to help. We offer a range of services covering fraud prevention, from reviewing your structures to helping you to build the perfect plan to suit you, your business needs, and your customers. We can help you to fight fraud, we all have one common goal in this. Contact us today and learn how much you could save.