Fraud & Identity Featured Article

Zumigo Mobile Prevents Credit Card Fraud

By Mandi Nowitz Web Editor

Credit card fraud is major concern, and on that is becoming increasingly – and unfortunately – difficult to avoid because scammers are finding innovative ways of stealing information. It’s an issue that Zumigo Corporation seeks to help address this growing crisis with its Zumigo (News - Alert) Assure fraud prevention product, which it says can even help reduce fraud once credit card numbers have been compromised.

The cloud-based global location and identity SaaS (News - Alert) platform works with financial institutions to prevent fraudulent transactions through banks’ and merchants’ payment processing systems.  It leverages the identity and location of a user’s mobile device, along with card ownership, to verify transactions.  Any discrepancy is immediately flagged and saves banks and merchants expenses resulting from fraudulent purchases, chargebacks, and the issuing of new credit cards. It also protects cardholders from having to deal with claims against fraudulent purchases.

“Combining real-time mobile operator data with real-time bureau data is one of most effective tools in preventing financial fraud and supporting identity-based business needs. Long before a breach is announced and before a credit card can be reissued, the consumer, the merchant, and the financial institution can all be protected,” shared Chirag Bakshi (News - Alert), Zumigo CEO and Founder.

Zumigo realized that traditional card verification is not effective. CVVs on the backs of cards were supposed to add extra security, but even they have largely failed. Assure Identity searches the cardholder’s credit file, matching name and address to credit card and credit report information. If the card is MIA, it is likely there is suspicious activity. 

Using Zumigo for online transactions can prevent online card fraud as well, thanks to mobile account data.  The address associated with the mobile number (and payment card) is compared to that of the transaction for inconsistencies, including location of the cardholder, location of the purchasing device, and billing and shipping addresses.

“As mobile ownership becomes pervasive globally, Zumigo is the only company to bring together authoritative mobile carrier identity information with real-time mobile location technology to solve a variety of complex security problems,” added Mr. Bakshi.

Mobile phones can be a major force in fraud protection, thanks for prevention services like Zumigo. It shows the exact location of where the cardholder and credit card should be at the time of purchase, detecting fraud in real time. Enabled with basic API integrations to banks’ and merchants’ processing systems, identity verification based on location is far easier. Customers only obligation is to give consent to verify data, and the fraud protection capability is enabled.

How protected is your credit card information?