Opening credit card accounts is the number one most common new account fraud, but only one of eight issuers evaluated offer alerts for new account setup, according to Javelin Strategy & Research’s Seventh Annual Card Issuer’s Safety Scorecard. The scorecard rates the top 23 card issuers against a benchmark of Javelin’s Prevention, Detection and Resolution fraud model.

Key report findings include:

•    One in four issuers are offering two-way actionable alerts and almost three in four offer alerts to mobile devices indicating an industry movement towards leveraging mobile platforms.

•    While overall prevention scores declined year over year, issuers continue to excel at resolving fraud (after the fact), meeting almost 90% of the criteria scored.

•    As an effective means of ensuring consumers take the proper precautions when conducting financial transactions online, issuers should consider requiring a minimum amount of security software in order to access the full gamut of online financial activity.

“A new wave of hacker attacks threatens the current security model, resulting in a call to action for issuers to take a strong look at the processes in place for detection and prevention of fraud,” said Javelin’s Philip Blank, managing director, Security, Risk and Fraud. “We have found that prevention features offer the highest return on investment, leading issuers to see that it is imperative to prioritize educating consumers on the current technologies needed for protection. We all know that the threat landscape is not going to change; however, the way that issuers and consumers respond to those threats will.”

According to Javelin, Bank of America finished “Best in Class” for the fifth consecutive year followed by (in order of ranking) Discover, U.S. Bank, USAA, and Capital One. Javelin weights issuers’ prevention capabilities the most heavily acknowledging that this is the most difficult to achieve but the most important for both consumer protection of ultimate fraud prevention and loss.

Javelin added more stringent criteria this year and put more focus on addressing the use of a truncated Social Security Number. Javelin also added eight new criteria to the prevention category.


https://www.javelinstrategy.com/news/1245/92/New-Wave-of-Hack-Attacks-Threatens-Consumers-Javelin-Crowns-Top-Card-Issuers-in-Identity-Fraud-Prevention-Detection-and-Resolution/d,pressRoomDetail