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MasterCard Launches New, Real-Time Fraud-Fighting Solution for PIN Debit Transactions

PURCHASE, N.Y.--(BUSINESS WIRE)--MasterCard Worldwide today announced MasterCard Online Fraud Monitor™, a new advanced fraud detection and mitigation solution designed to enhance security for PIN debit transactions.

Developed in collaboration with BasePoint Analytics, this offering uses a new sophisticated risk-scoring model to detect potential fraudulent PIN debit transactions in real-time, during the authorization process. The model uses advanced analytics that consider factors such as account spending, device level (ATM and POS) activity, and historical transactions to calculate the likelihood of fraud on an individual ATM card or debit account.

In practice, this means that when a debit card is swiped and the PIN is entered, MasterCard’s technology quickly examines and scores the transaction for potential fraud, allowing the issuing bank to advise the merchant whether to accept or decline the transaction in real time.

MasterCard Online Fraud Monitor differs from competitive offerings in that it is the only network-installed, global ATM and PIN POS fraud detection tool in the industry to protect PIN transactions, which are poised for double-digit growth for the next few years*.

Fraud Protection


I do have a little problem with the pin protection service. I am an inconsistent and a unusually user of the debit card. So I could get my transaction denied even if I have enough in my account. This would make me mad.

However, I see some banks using this to force people to use the signature method instead of using the pin purchase method. This would be problem at merchants that just take debit/atm cards.

PROFILING

hmmmm

It is nearly impossible to charge back a PIN based transaction. The bank will say "how did he know your PIN unless you gave it to him?" Unless you can find the perpetrator and convict him in court you're out of luck.

So I don't see stores worrying much about losing money from fraudulent PIN debits, compared to charges thru "credit" networks.

However, you are still protected in the U.S. for fraudulent card activity
http://www.ftc.gov/bcp/conline/pubs/credit/atmcard.htm

Up to 2 days you are only libel for $50.00
3 to 60 days you are only libel for $500.00
After 60 days -You could lose all your money.
Now if it is just your debit card number that was stolen you are only libel after 60 days.

The key is to report the unauthorized use or lost of card quickly. So they can hotlist the card. Most banks will eat the $50.00 and overdraft charges.

They already have this in place on AmEx for credit card transactions and Visa has it for both debit and credit.