The Shazam electronic funds transfer network has introduced a fraud-prevention service that enables debit card issuers to block specific transactions.
With Shazam's Card Block, issuers can watch for potential red flags that might be signs of fraud, and then block suspect transactions using a card's bank identification and primary account numbers.
For example, a banking company could prevent a card from making transactions in a certain country if it believes the fraud risk is high, said Dan Kramer, Shazam's senior vice president of marketing and merchant services.
"It can be used in a post-fraud event, but we really see it as a prevention tool," Kramer said. "If a financial institution believes that a particular local merchant has been compromised, then it may choose to block transactions for that location, that chain or multiple outlets in the area."
Several banks tested the service over the past six months. Shazam said last week it is now offering it to all clients.
