Friday, February 13, 2015

VISA to start using geolocation to thwart fraud

There's been a lot of talk lately about mobile payment methods and it's enhanced security features, but now VISA is promoting a technique that may be one of the most effective (and that I've been suggesting for years, if I may say): using geolocation to check if you're actually at the place you're shopping at.

Credit card companies do they best to prevent fraudulent operations with stolen or cloned cards, but it isn't easy differentiating between a legitimate transaction and a potential fraudulent one. More so, if you get too aggressive on those techniques you can risk locking out real customers when they need the card the most (happened to me once, on vacations, because it considered it was an operation done at an unusual location).

This new method is smarter. What VISA is proposing is to simply use your smartphone to check you current location and see if it matches the location the transaction is taking place. Simple and effective... providing you take your smartphone with you everywhere (and who doesn't?)

In any case, to prevent the usual privacy backlash, this system is something that will need to be implemented by each individual back, and that customers will have to opt in if they want. Now all we have to do is to wait banks do just that, as soon as possible-

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