June 18, 2012
ACI Worldwide Teams Up with Spectrum to Deliver Credit Card Fraud Alerts via Text Message
When credit card fraud occurs, it's important to notify customers of suspicious transactions quickly.
ACI Worldwide (News - Alert), a provider of payment processing services, has announced a partnership with Spectrum Message Services Pty Ltd to deliver fraud alerts via text message using Spectrum's (News - Alert) MoneyGuard system.
“Banks, processors and merchants are all vulnerable to the threat of mass data breaches," Craig Saks, vice president, Global Product Business Operations, ACI Worldwide, said. “Traditionally, these events were hard to detect as they were reliant on the fraud being reported by the customer days, weeks or even months after it was first noticed. The availability of this enhanced mobile alerting solution advances fraud detection and mitigation by allowing the customer to interact directly with the fraud detection system thus significantly shortening the time between when a suspicious activity occurs and when it is first reported.”
Institutions using the system will be able to track transactions in real time and send a text message to cardholders if a charge looks suspicious. If the transaction is fraudulent, the customer can reply with “BLOCK” and the card will be frozen. This system will stop fraud faster while reducing erroneous fraud reporting where the card is blocked even though the transaction is legitimate.
OTP Bank in Hungary is one of the financial institutions already using the system, and with good results. The bank had high fraud rates before they started using text message alerting. Now they have one of the lowest in the world.
“Although SMS alerting began as an addition to a fraud monitoring system, MoneyGuard quickly became a valued customer service of the bank," Ákos Takáts, the Deputy CEO and Head of the IT and Bank Operations, OTP Bank, said. “It was appreciated by the customers and became a valuable source of revenue for the bank.”
The system allows cardholders to automatically flag certain types of transactions, such as international charges, transactions higher than a set amount and online purchases. Customers can also access their balances, view and change information, such as the settings for mobile alerts.
“SMS messages are proving to be a very popular method for banks to communicate with their customers," Gerard Vos, managing director of Spectrum Message Services, said. "They are unobtrusive and discreet, are very easy for people to respond to when needed and are faster than responding to a voice call. Members of the public are very aware of fraud, and view banks more favorably that are known to take fraud prevention, and customer service, seriously.”
Edited by Brooke Neuman
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