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Implementing fraud controls that are too aggressive can wind up costing card issuers a lot more than charge-backs, according to Edmund Tribue, global practice leader for the risk management practice of MasterCard Advisors LLC. Tribue says he is trying to help one card issuer, which he would not name, undo the damage from what he calls its overreaction to a breach that compromised some of its cards. The compromise led to subsequent fraudulent transactions. "They shut down all foreign transactions on their cards because they were getting hit," Tribue tells CardLine. The move potentially stranded travelers who had planned to pay for hotel and other expenses using the cards, he says. "While they may have stopped fraud losses, customer loyalty went down the toilet," Tribue says. "I'm sure there will be some customer attrition for that issuer."
