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. At this year’s Global Payments and Card Conference, panelists from Bank of America Merrill Lynch and the payments industry covered ways to thwart attacks.
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:
- Recognize signs of fraudulent emails, and verify the sender before opening attachments and clicking links
- Use a strong, unique password for each of your accounts
- Enable multi-factor authentication or biometrics like fingerprint sign-on or retina/facial recognition when available
- Only download software or applications from well-known or trusted sources
- Avoid using public Wi-Fi unless you use a secure, private connection, like VPN software
- Turn off Wi-Fi and Bluetooth services when you’re not using them
- Back up your data regularly