One of the recent studies conducted by Javelin Strategy and Research reveals that the level of protection on your credit cards depends on the lenders from whom you have obtained the card. this study, conducted in June this year, has found out that most of the credit card lenders have protection programs that come into effect once the fraud has taken place. However, a few credit card lenders have excellent protections in place to prevent the card from falling prey to fraud.
Javelin’s Managing Director for Security, Risk and Fraud division, Phillip Blank, says that protection programs to prevent fraud from taking place are the most required, but they are also the most difficult to execute. Preventive measures not just protect the consumers from data theft, it also safeguards the reputation of the bank.
As a part of this study, the fraud protection programs offered by 23 major credit card lenders in the United States was taken into consideration. One of the previous studies conducted by Javelin revealed that the total loss caused due to identity theft in 2010 came up to $37 billion. And even though measures have been taken to curtail losses and prevent identity thefts, there are many more loopholes that need to be plugged.
As per the reports from Javelin, one of the most common types of fraud is applying for a credit card in the name of another person. The study revealed that though most of the credit card lenders have implemented various checks when unusual transactions take place on an existing card, only 8 major players have similar checks in place while opening brand new accounts.