Adeptra Survey Reveals Banks and Card Issuers Are Investing in Technology to Battle Fraud

The U.S. Treasury's Financial Crimes Enforcement Network determined that suspicious transactions related to credit card fraud increased by 95 percent from 2007 to 2008, a figure that was expected to rise again in 2009. As a result, banks need to improve their handling of fraud cases by speeding up resolution processes, increasing effectiveness, and investing in new technologies.

A recent survey of banking executives by Adeptra, a provider of automated contact and resolution services to companies engaged in consumer credit and risk management, found a discrepancy in the the methods used by banks to notify customers of suspected or actual fraud versus those demanded by consumers. Previous research by the firm found that a majority of respondents (54 percent) would prefer to be notified with a call to their cell phones, 20 percent by a call to their landline telephones, 20 percent by email, and 6 percent by text message to their cell phones.

The majority (73 percent) of banks, though, are contacting customers via calls to their landline. Eight percent place calls to the cell phone, 7 percent use email, and 5 percent use postal mail. None of the respondents use social media to communicate potential fraud to consumers, while only 3 percent use text messages to cell phones.

You can’t beat a phone call for fighting fraud. Any increase in fraud calls for better, faster communication between card issuers and consumers," says Ed Broyles, managing director, North America, at Adeptra. "Speech components of technologies like Adeptra’s provide real-time dialogue so potential cases of fraud can be flagged and prevented in one call. The combination of speed and technology is the perfect solution.”

The Adeptra survey also asked banks and credit card issuers how they educate customers about fraud and how they prevent it. Face-to-face sessions at account openings and online FAQs are the most widely used methods, each selected by 28 percent of respondents, while 15 percent preferred advertising through TV, online, and in print. Other methods that were selected included communication to customers via fraud or contact center staff (12 percent), and 10 percent said they included inserts in statements or mailings.

Among survey participants, more than a third (36 percent) said the incidents of fraud they were handling had increased, and a further 20 percent said that it was a priority to speed-up reaction times to prevent potential fraudulent transactions. Almost a third (30 percent) said they were seeking ways to more effectively resolve cases.

“Banks and card issuers are confronted with increased fraud volume and time-sensitivity of threats to consumers. They require a solution that can stay ahead of threats and utilize communication channels that customers will respond to," said Lou Venezia, CEO of Adeptra, in a statement. "Customers are demanding calls to cell phones for notification. Adeptra can help by providing automated contact and resolution services, contacting consumers swiftly, directly, and through the right channel as soon as fraud is suspected.”

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