A New Credit Card Fraud Weapon

A new scheme to fight the menace of Identity Fraud has been proposed by ID Analytics who are a U.S company, it is being brought into use to try and cut the amount of identity fraud in the UK and could be put into fruition by as early as June this year.

This new fraud-fighting tool is being widely backed by most of the top credit card companies, banks and mobile phone companies, as they look to save cash and the problems that this type of fraud brings to them and they’re customers.

This project has already been up and running in the U.S to combat Identity fraud and is being seen as an ideal way to notice any suspect applications being made by crooks to obtain cash and goods in the name of someone else. This has been given the backing of 14 of the biggest companies in America, which include 5 of they’re major banks, so in all said and purposes it must be of some good in the fight against identity fraud.

The way it works is by letting ID Analytics have the freedom of the data that the companies hold on they’re customers. This is stored on a system that nobody else has access to as it is encrypted. ID Analytics will then use the data that they are now allowed into, to spot if any suspect transactions are trying to be made by crooks.

The identity thieves, are using the information that they have stolen credit cards or “Skimmed” from people’s credit cards, are then using this information to set up bank accounts, credit cards, buy goods to then sell on and in some cases actually taking over your bank or credit card accounts and removing your cash to else where or taking your credit card to it’s limit leaving you with a hefty bill to try to sort out, these crooks don’t care who they taking from, rich or the less well off it doesn’t matter to them.

So this is where the ID Analytics system will come into play, the system will be able to pick up any out of character transactions that are being made at any one time, that are all to similar, this means that if an application is being made to the three main backers of the system, namely the banks, credit card companies and the mobile phone companies, this will be picked up by ID Analytics new system and relayed to everybody concerned to check whether the applicant is for real or not. This would not have been possible without this system, as the different factions are not allowed into each other’s database.

All of this is hoped to reduce the growing threat of identity fraud that had a growth of 22% a year in figures released by The Association for Payment Clearing Services and it will cut the 1% cost of fraud to the profits of the banks.