MasterCard pilots new card service to reduce fraud

Wednesday 26 February 2014 10:59 CET | News

MasterCard and roaming infrastructure company Syniverse have joined forces to pilot a new service that will enable card transactions for users only when they have their mobile device switched on in a specific geolocation abroad.

The initiative is aimed at reducing fraud and decreasing the number of real transactions that are declined.

According to Hany Fam, president of Global Strategic Alliances at MasterCard, cited by online media outlet PC World, between 50 and 80% of transactions that are declined are actually legitimate transactions, but they are declined by financial institutions for security reasons.

The piloted process starts with a check that goes from the payment terminal into Syniverse’s platform, which keeps track of where roaming phones are located and then information is returned about whether a transaction should be approved or denied. As soon as a location is used, there are privacy issues that have to be dealt with. Users will have to opt-in to the service in advance.

In recent news, MasterCard as unveiled that it has entered into an agreement to acquire C-SAM, a provider of secure mobile transactions technology offering a range of mobile-based applications for financial institutions, retailers and mobile network operators that incorporate near field communication (NFC), quick response (QR), online, remote, coupons.

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Keywords: MasterCard, online fraud, credit card, card transactions, mobile devices
Categories: Fraud & Financial Crime
Countries: World
This article is part of category

Fraud & Financial Crime

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