Gas Retailers Hit by Credit/Debit Card Fraudto Get Help from Visa’s Intelligent Analytics Program
For anybody who feels gas stations getting defrauded by hackers is karmic retribution for those sudden and unexplained (and usually unexplainable) gasoline price hikes, please be advised that the ones who end up paying in the end are usually…us.
So Visa testing a pilot intelligent analytics program to prevent credit and debit card fraud at the pump ultimately saves everybody money — except maybe the scammers. According to a piece on darkreading.com (link to article), Visa’s solution “enables merchants to use real-time authorization risk scores to identify transactions that could involve lost, stolen or counterfeit cards [without] infrastructure upgrades or disruption of the customer experience.”
How it works
“After a cardholder inserts the card at the pump, Visa analyzes multiple data sets such as past transactions, whether the account has been involved in a data compromise, and nearly 500 other pieces of data to create a risk score. This allows merchants to identify those transactions with a higher risk of fraud and perform further cardholder authentication before gas is pumped.”
Uses existing hardware and software
Visa uses existing message fields and formats as well as pump software or hardware. Several fuel merchants who piloted the technology over the last several months noticed a decrease in fraud, without negatively impacting their consumers’ experience. In the pilot program Visa reported the test stations’ fraud rate dropped more than 20 percent.
Mike Swillo, Shell’s U.S. Credit Card Operations Manager said, “We provide fuel to millions of customers each month through approximately 15,000 service stations in the United States. When we consider new solutions and technology it has to have a clear business benefit, be customer-centric, and easy to implement. With no infrastructure investment, we are testing [Visa’s solution] as part of our proactive fraud prevention tool-set to better identify fraudulent card activity earlier in the transaction cycle, without inconveniencing our customers.”
ThreatMetrix builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions. These solutions authenticate consumer and workforce access to mission critical applications using real-time identity and access analytics that leverage the world’s largest trusted identity network.
ThreatMetrix secures enterprise applications against account takeover, payment fraud, fraudulent account registrations, malware, and data breaches. Underpinning the solution is the ThreatMetrix® Global Trust Intelligence Network, which analyzes over 850 million monthly transactions and protects more than 210 million active user accounts across 3,000 customers and 15,000 websites.
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