Credit Card News

Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Location Technology Tracks Credit Card Fraud

Location Technology Tracks Credit Card Fraud

Add to Favorites:
Location Technology Tracks Credit Card Fraud
Tags: , , ...

If your credit card is used to make a purchase or get cash from an ATM in Madrid while your mobile phone is at home in Minnesota, you could be the victim of credit card fraud. On the other hand, if you are visiting Spain, you won’t be happy when your credit card gets frozen in a mistaken attempt to protect you from fraudulent charges. But new technology available to banks and credit card issuers could nip this confusion in the bud and help them improve fraud detection.

A service that uses proximity correlation to track the location of a customer’s mobile phone in relation to where their credit card is being used could make fraud detection more accurate and help prevent false fraud reports. Anyone who has had their credit card frozen while on vacation knows the conflicting feelings of irritation and reassurance that result: being glad that the credit card issuer is on the lookout for fraud, but annoyed that the card is frozen.

Proximity Location Service stops false fraud reports

FICO is introducing Proximity Location Service as part of its Fraud Resolution Manager program after trials of the product showed a marked reduction in false fraud reports. In United Kingdom trials, there were up to 70% fewer false reports when banks used proximity technology as part of their fraud prevention program.

“Banks are trying to perfect a tricky balancing act – protect customers without causing undue frustration for cardholders who travel or who use their cards in new locations,” said Gabriel Hopkins, a senior director at FICO.

The Fraud Resolution Manager is a communications service that banks can use to protect their customers from criminal activity. FICO Proximity Location Service now comes bundled with the service and compares the location of the customer’s phone to the location where their credit card or debit card is being used. Cardholders must register their mobile device with a card issuer that uses FICO Fraud Resolution Manager to take advantage of this new technology.

If it’s found that a card is being used overseas while the customer’s registered phone is at home, the card will be automatically blocked from further use until the cardholder is notified and can verify the activity. When the cardholder confirms the activity is legitimate, the card can be unfrozen.

Add to Favorites:

Related News:

Ethoca and FICO Fighting CNP Fraud

By Dar Dowling, Posted: January 27, 2017

FICO and Ethoca, a technology company, are partnering up on a project providing card issuers and online merchants with a way to not only boost card acceptance, but to thwart ecommerce fraud and disputes. Continue reading
More Smartphone Banking Apps Wanted

By Dar Dowling, Posted: January 15, 2014

Consumers are looking to get more out of their smartphones when it comes to managing their money and credit cards, according to a new international FICO study. Continue reading
Consumers Concerned About Credit Card Fraud

By Elizabeth Nelson, Posted: December 02, 2014

Following a rash of data breaches and credit card fraud in 2014, consumers are worried about the safety of their payment information during this year’s holiday shopping season. A recent survey showed that 70% of U.S. consumers are ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit