​Common Credit Card Scams - Report​​

October 31, 2021

Common Credit Card Scams - A new report on the current state of the detection and prevention of fraud in U.S. banks concludes that while most banks have invested heavily in securing communication channels and validation of the identities of customers, few have made sufficient investments to detect cross-channel fraud patterns or overcome organizational silos.

Detection and prevention of fraud in U.S. banks, released today by Novarica, technology strategy & research division of Novantas LLC, includes data from a survey of members of the CIO Novarica Banking Technology Research Council, a moderate knowledge sharing community of nearly 100 senior IT executives from a wide range of U.S. banks and credit unions, as well as a review of recent initiatives by the Bank publicly disclosed, and a summary of the leading providers of solutions.

“The proliferation of channels and the expectations that accompany the increase in speed and comfort means that fraud detection and prevention depends largely on the capabilities of information technology,” says Matthew Josefowicz, partner and managing director Novarica and lead author of the report. “As fraud patterns more organizational silos and cross more sophisticated, banks have to invest inanlysis, as well as the traditional channel security.”

The main conclusions of the report include:

* Card, checks, ATM and fraud are the most common types of fraud found by the banks and the banks are well prepared in these areas. Few banks have experienced a lot of fraud through emerging channels, but banks also feel prepared to face these threats as well.

* Most banks have already implemented multiple fraud detection and prevention technologies, but still significant minorities that have not implemented common methods such as knowledge-based authentication and fraud alerts, not to mention the methods more advanced and out of band authentication.

* A third of the banks surveyed have no confidence in their ability to detect fraud through the channel. This may in relation to 41% of the banks mentioned silos of the organization as a top barrier to effectiveness. Lack of resources is the most commonly cited factor.

The report also includes profiles of offers selected solution providers in this space, including CA, FICO, First Data, FIS, Fiserv, IBM, Intuit, Jack Henry, Microsoft, NICE Actimize, RSA, SAS, Symantec, Wolters Kluwer , Andera, Cyveillance, Entrust, Guardian Analytics, iovation, IronKey, Maxmind, ORCC, Quova, ThreatMetrix, and Basque.