Recent innovations in payments have altered the fraud landscape, both for better and for worse. While the introduction of chip-and-PIN cards has curtailed counterfeiting, there are new types of threats arising in its place that require constant vigilance and protective measures.
In the Card Fraud: The Evolving Landscape podcast, we’ll talk about the shift to chip and PIN in cards, contactless cards and mobile wallets, and card-not-present fraud.
Card Fraud: The Evolving Landscape
EMERGING TYPES OF CARD FRAUD
While certain types of fraud are down, new scams are emerging. Here’s what to watch for.
Significant, highly publicized data breaches have exposed millions of credit card numbers. Yet more transactions today take place online, or in other environments that don’t require the physical card.
Account takeover (ATO)
Criminals can use a cardholder’s personal or account info to make purchases, open new accounts, request replacement cards or validate fraudulent transactions.
This type of fraud takes place when a chip card is swiped or manually keyed at a chip-reading device.
Automated fuel dispensers (AFD)
Gas pumps aren’t required to have chip readers until October 2020, which makes them susceptible to counterfeit cards.
MINIMIZING CARDHOLDER IMPACT
Sharing simple, common-sense steps with your cardholders can help you combat these new fraud types.
- Use a chip whenever possible, and request it when a chip reader is available
- Know your PIN to avoid having transactions declined
- Sign up for mobile alerts, which give real-time visibility into potentially fraudulent transactions
- Verify name, address and CVV for online transactions
- Report suspicious activity immediately
HOW WE KEEP YOUR INFO SAFE
More than 600 Bank of America associates are dedicated to fraud prevention. With future fraud attempts always possible here are additional measures for staying safe:
- Lock accounts and devices with a strong password and use two-factor authentication or fingerprint (biometric) ID
- Consider using a password manager
- Update apps and OS software and back up devices frequently
- “Harden” your home network by updating the default password on your wireless router, using WPA or WPA2 encryption, turning on firewalls and setting up a separate network for guests
- Always log off after using public computers, sign out of social media accounts and actively manage privacy settings
- Only connect to trusted Wi-Fi and Bluetooth networks, if possible
- Monitor accounts for suspicious activity and disable remote connectivity and automatic Wi-Fi and Bluetooth connections when travelling