Half of Banking Customers Hit by Card Fraud Change Banks

One in Five Hit by Card Fraud in Past Five Years: ACI Worldwide Survey HALF (49%) Would Consider Changing Banks Following Card Fraud...22% "Would" Change Banks! Editors Note:  Wow, if I was a financial institution offering "online banking" that headline would haunt me 24 hours a day until I figured out a way to either change it or use it to create an opportunity for my online bank to flourish.  My first thought would be: "If 50% would  consider "changing banks AFTER" they get hit by card fraud/online banking/phishing fraud, how many would consider  "changing banks" to "AVOID" getting hit?   And to which competitor would they go? I'd conclude that if they "left because of insecurity" they would probably "come on board BECAUSE of security."  So if I wanted to open a portal for dissatisfied online banking customers, I would use a uniquely positioned product to ensure my customers security.  I'm thinking Swipe vs. Type here.   Then I would think...how many potential customers could my bank procure by "guaranteeing" online security?   Research would determine if it was millions or only "Hundreds of Thousands."  I think I made my point.  If not, then there's always this: "Fraud reduction is one area where financial institutions are able to take decisive and positive action to reduce losses and enable them to protect their image and retain the trust of their customers."   Protect Your Customer...in fact "Enable Them" Protect Your Image...in fact "Enhance It" Considering the drastic rise in cybercriminal activity, especially activity aimed at financial institutions, I would think that the key to any online banking branding strategy would be about protecting the customer from phishing and malware and protecting, better yet, enhancing the financial institutions image.  Those two principals should drive any strategy.  Since banks cannot control whether their customers visit a malware infested website, they have to find another way to protect both themselves and their customers from malware.   The "other way" is to require their customers to Swipe vs. Type.  As I've said in the past, two of the three steps are already done by the bank.  They issue the card,  they issue the PIN, the last remaing issue is a device that reads the card and the PIN.   The best choice is a PCI 2.x certified PIN Entry Device designed for eCommerce use. It's the fastest and familiar way to securely authenticate their user and by eliminating "typing" you eliminate the threats from malware and phishing.  These days, it's all about security.  The web is NOT secure.  Therefore financial transactions need to be conducted "outside" the browser space.  However, for the sake of argument, let's assume those principals are not adhered to.   Assume that banks are willing to take the risk that their clients' online banking information will get phished, that it's "just a cost of doing business."   The game has changed.  When 50% of consumers say they might change banks if they (or somebody they know) experienced card fraud it's not just about phishing anymore.  It becomes a much more serious problem.   I would think that banks might be less willing to take on the risk that half of their customers will jump ship.  That very real threat is one that HomeATM can eliminate as well.   We don't operate within the browser, we operate without.  We simply utilize the Internet as the "conduit" whereby the encrypted cardholder information is channeled.  It cannot be unencrypted until it reaches an HSM.  Phishers can't phish if consumers don't type.   If online banking consumers are going to switch banks anyway, why not have a strategy to "swipe them" off their feet?   I have to seriously ask...when will a bank "connect the dots" and offer their customers the only PCI 2.x  and TG-3 certified personal e-banking log-in device in two hemispheres.  It is a no brainer.  Guarantee their security. What is the guarantee?  That your customers data is safe and therefore your customer is safe.  Our device would render phishing useless by requiring secure 2FA login (swipe card/enter PIN)   With our device it doesn't matter what malware is on the computer, it wouldn't be able to steal username/password data because that data is NOT typed in anymore.  It might very well still be on the PC, but it's no longer used for logging in.  Typing has been eliminated and without typing, the bad guys can't steal your customer's card numbers.   Eliminate typing and you also eliminate the threat of  keyloggers, cloned bank websites, counterfeit cards AND losing your valuable customer to a competitor. Two factor 3DES DUKPT End to End Encrypted PCI 2.x and TG-3 Certified Military Grade security... used for securing online banking log-in, money transfers, conducting more secure online transactions and thus enhancing your bank's image...all for $12 a pop?  Yeah...So get ahead of your competition by simply connecting the dots!  Your almost there...2 outta 3 ain't bad, but 3 outta 3 is better.

NEW YORK, July 28, 2009 (GLOBE NEWSWIRE) -- ACI Worldwide, Inc. (Nasdaq:ACIW), a leading international provider of electronic payments software and solutions, today announced that its global card fraud survey revealed that 18 percent of consumers questioned have been victims of credit or debit card fraud in the past five years. The research, of more than 2,400 consumers across eight countries, also found that if an individual or someone they knew was hit by card fraud, 22 percent would change financial institutions, and a further 27 percent would consider changing financial institutions. In the light of these findings, and the continued commitment by financial institutions around the world to protect their customers from card fraud, ACI Worldwide has launched its Guide to "Stopping Card Fraud in its Tracks," with contributions from Nationwide Building Society, to provide advice to fraud managers in banks to help combat card fraud and protect their customers. Editor's Note: In the US and UK 27% or 1 in 4 people have been toasted by card fraud.  Replace the toaster with a PCI 2.x certified PED.  And give them away!  Cause you care!  The money will come!  In fact, last time I checked (in April) the American Bankers Association said: “Banks that demonstrate a keen understanding of customer needs and put forth capabilities that align with them can differentiate themselves from competitors, command higher pricing, and become the provider of choice for deposit-rich market segments.  Successful banks will develop programs that demonstrate industry understanding, critical product capability, and communicate commitment.” The survey highlights some wide variations in fraud trends around the world. In the US and UK, 27 percent of respondents have been hit by card fraud in the past five years, compared to only seven percent in Dubai, eight percent in Germany and 15 percent in Australia, China and Singapore. When it comes to customer attitudes to card fraud, a fifth of the respondents said they are not confident their financial institution can protect them, with this number rising to over a third in China. What's more, almost half of respondents said that they would change banks, or at least consider it, if they or someone they knew was hit by card fraud. Editor's Note:  Okay, now if I'm in the banking industry and I read this, I wouldn't be haunted anymore.  I would be excited.  Because I would see a HUGE opportunity to capitalize on these consumer behavioral attitudes.  If Half would change banks (even if it was just someone they knew who was hit by card fraud) that means I have the opportunity to "lure" them to my financial institution.  Did I just say lure?  I did.   You can "Phish" for online banking customers by eliminating...phishing. HomeATM's Online Banking program would  would keep banking customers safe and secure and attract dissatisfied customers who leave their banks.  It's simply a branding strategy.  You brand your bank as the most secure online banking system available.  And you secure it with a PCI 2.x and TG-3 certified system.  And you "give them away" with a smile on your face.  Because it empowers you,  protects your customers, enhances your image and will make you money!  Pete Corrie, head of financial crime at Nationwide Building Society, comments: "The number of card payments globally has increased drastically over the past few years and, consequently, the whole industry has seen associated fraud levels go up. David Nussenbaum, vice president and product line manager at ACI Worldwide, adds: "The international research we have conducted shows that although card fraud trends vary around the world, it is still a persistent problem for banks. In order to protect themselves and their customers against potential fraudulent attacks, financial institutions are looking for ways to implement effective anti-fraud strategies, while maintaining efficiency and keeping costs to a minimum. We believe that our Guide will provide some useful and practical advice." The ACI Worldwide research on card fraud was conducted during July 2009 in Australia, Brazil, China, Dubai, Germany, Singapore, the UK and the USA surveying a total of 2,408 respondents. To download the ACI Worldwide Guide to 'Stopping card fraud in its tracks', go to www.aciworldwide.com/stopcardfraud. About ACI Worldwide ACI Worldwide is a leading provider of solutions to initiate, manage, secure and operate electronic payments for major banks, retailers and processors around the world. The company enables payment processing, online banking, fraud prevention and detection, and back-office services. ACI solutions provide agility, reliability, manageability and scale, to more than 800 customers in 90 countries. Visit ACI Worldwide at www.aciworldwide.com. CONTACT: ACI Worldwide Catherine Eyres +44 (0) 1923 812741 Catherine.Eyres@aciworldwide.com

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