IT Compliance Advisor

Feb 18 2011   2:25PM GMT

Potential card fraud victims say it’s the response that matters



Posted by: Ben Cole
Tags:
card fraud protection
fraud victims
victims of cybercrime

SearchCompliance.com recently wrote about how victims of cybercrime are often consumers targeted via their personal-use technology, such as handheld devices. Now, another report is reinforcing that cybercrime is on the rise and highlighting the importance of customer service and response when online fraud occurs.

ACI Worldwide’s “2010 Global Card Fraud Survey,” which polled 4,200 consumers in 14 countries, shows that 29% of consumers across eight major economies have been victims of credit card fraud in the past five years. However, there’s good news in there for the breached establishments: 79% of these victims were satisfied with the response from their financial institutions.

To be sure, credit card fraud might push some customers to seek greener pastures. As a result of being a card fraud victim or knowing someone who was, 41% of survey respondents say they would change or consider changing their financial institution.

But 45% of respondents say their decision would depend on the quality of service they received in the wake of the incident. The main indicator for customer satisfaction is the speed at which money was refunded following fraud (34%), followed by the ability of financial institutions to identify the fraud before account holders (27%) become aware of it. For American consumers, their banks’ ability to identify the fraud before they do (40%) is more important than its success in actually getting the money back quickly (32%).

Even with the most innovative, cutting-edge cybercrime-prevention strategies in place, cunning criminals often find a workaround. Luckily for the financial institutions, it appears that consumers trust their banks to protect their assets and truly appreciate their banks’ swift responses when unfortunate circumstances strike: Of those surveyed, 81% have confidence in their financial institution to protect them from online card fraud, and only 19% of consumers feel that their banks could do more to protect them.

When fraud hits, timely notification on the part of the bank is probably the best way to placate customers: More than half of the survey’s respondents say they want their bank to contact them if they notice suspicious activity on their card.

Jasbir Anand, lead solutions consultant at ACI Worldwide, said in a statement that it is clear that financial institutions and processors are working to combat card fraud and protect potential fraud victims — and this is paying dividends in terms of customer satisfaction.

“However, fraud is constantly changing and, looking forward, the industry will need to increase focus on identifying identity theft and assisting victims to maintain this improvement in customer experience,” Anand said.

It seems that a quick, honest response when your system has been breached is the most appropriate way to keep your customers happy (or as happy as they can be when confronted with cybercrime). If customer communication isn’t your financial institution’s strong point, you could lose more than money: Your customers’ hard-earned trust could walk out the door with it.

 Comment on this Post

 
There was an error processing your information. Please try again later.
Thanks. We'll let you know when a new response is added.
Send me notifications when other members comment.

REGISTER or login:

Forgot Password?
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Forgot Password

No problem! Submit your e-mail address below. We'll send you an e-mail containing your password.

Your password has been sent to: