Most banks still use a sledgehammer to address suspected ATM and debit fraud, canceling cards at the slightest hint of a problem, inconveniencing customers and dealing with the $20-$30 cost per card to re-issue. But a new product from Actimize, which can be integrated into the company’s enterprise fraud solution, will allow institutions to block specific suspect transactions, but not have to cancel and re-issue cards.
The capability comes in part from Actimize’s recently announced acquisition of a consortium of ATM and debit card data and fraud detection models that pulls from several billion transactions from thousands of banks, says Amir Orad, Actimize’s CMO. An independent issuer that tested the product detected 40 percent more fraud transactions compared to a leading legacy card fraud solution, Actimize says.
Debit card fraud losses last year totaled more than $1 billion, according to the ABA’s Deposit Account Fraud report; credit card fraud losses were $2 billion.