09/12/2024
Why credit card fraud alerts are rising, and how worried you should be about them
CNBC
- The rate of credit card fraud alerts is rising, according to Deloitte, often inconveniencing consumers.
- New shopping patterns, spending on big-ticket items, and lack of use of monitoring services, purchase limits, biometric security, advanced password protection, and credit freezes, can all result in a higher rate of fraud alerts.
- While use of fraud detection AI is leading to some false alarms, Mastercard says it is getting better quickly, and about 60% of credit card holders in 2023 experienced attempted fraud, according to Experian.
It’s a scenario most people have encountered: you try to make a big or unexpected purchase on your credit card, and, at the moment you need it the most, the card gets declined.
Sometimes, it’s as simple as confirming the purchase via text message, and you can quickly complete the transaction. Other times, it’s a days-long process that involves confirmation codes, mailed letters and waiting on hold with the card company to validate that it was indeed you who wanted to buy the product.
The rate of fraud alerts is “absolutely” going up, according to Deloitte U.S. risk & financial advisory principal Satish Lalchand.
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