Fraud Tips for Cyber Monday and Beyond
“Black Friday and Cyber Monday will probably see record levels of card fraud this year,” says TJ Horan, vice president, who oversees FICO’s fraud solutions
Every year, the increase in shopping on Black Friday and Cyber Monday, and throughout the following shopping season, draws a rise in both card-present and card-not-present (CNP) fraud. This year, the threat may be greater than ever:
- Recent data breaches have exposed millions more cardholders’ details
- In the U.S., the number of cards compromised at ATMs and merchants rose 39 percent in the first six months of 2017, compared to the same period in 2016, making it more likely that people could fall prey to fraud when getting cash out for holiday shopping
- Around the world, online purchase growth is driving more CNP fraud. For example, fraud losses based on CNP transactions rose 9% in the UK in 2016, as shown on the FICO European Fraud Map, and represent 70% of card fraud in the UK
FICO offers these fraud tips for consumers:
Take Care at ATMs
- If an ATM looks odd, or your card doesn’t enter the machine smoothly, consider going somewhere else for your cash.
- Never approach an ATM if anyone is lingering nearby. Never engage in conversations with others around an ATM. Remain in your automobile until other ATM users have left the ATM.
- If your plastic card is captured inside of an ATM, call your card issuer immediately to report it. Sometimes you may think that your card was captured by the ATM when in reality it was later retrieved by a criminal who staged its capture. Either way, you will need to arrange for a replacement card as soon as possible.
Check your Purchases
- Check your card transactions frequently, using online banking and your monthly statement.
Work with your Card Issuer
- Ask your card issuer for a new card number if you suspect that your payment card may have been compromised. It’s important to change both your card number and your PIN whenever you experience a potential theft of your personal information.
- Ask your card provider if they offer account alert technology that will deliver SMS text communications or emails to you in the event that fraudulent activity is suspected on your payment card.
- Update your address and cell phone information for every card you have, so that you can be reached if there is ever a critical situation that requires your immediate attention.
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I further broke this down by looking at the characteristics of the youngest 15% in each group, which occurs at age 29 for the 750-799 group and 43 for the 800-850. We used FICO<strong>®</strong> Score 9 for our analysis, and examined typical variables of the categories that go into the make-up of the score.</p> <p><a href="http://www.fico.com/en/blogs/wp-content/uploads/2016/10/FICO-Score-High-Achiever-table.png"><img class="alignnone size-full wp-image-29367" src="http://www.fico.com/en/blogs/wp-content/uploads/2016/10/FICO-Score-High-Achiever-table.png" alt="fico-score-high-achiever-table" width="715" height="747" /></a></p> <p>Since there’s a lot to dissect in this chart, I’ll highlight a few findings that struck me: <ul> <li><strong>Credit history.</strong> Higher scores are undoubtedly associated with a longer time on file. What’s striking is the higher average time on file for the 800+ group, both overall and for revolving accounts (the most common trade line). 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While 23% of the national population have collection items greater than $99, the figures are only 0.5% for the 800+ group and 3% for the 750-799 group. It is clear that, in conjunction with starting a credit file early, paying on time is a key trait of the FICO® Score high achiever.</li> <li><strong>Balance and utilization.</strong> Finally, we look at how credit is being used, focusing on revolving product use. (Since most people only have one mortgage or one auto loan, variation in instalment product figures is minimal and driven by payment history, which is near perfect for high scorers, as we’ve seen.) FICO® Score high achievers tend to have more open revolving accounts. While the % active trades and utilization are generally lower, by no means do high scorers avoid the use of credit products. What drives the difference here is the amount of <u>available</u> revolving credit utilized. 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It ain’t rocket science!</p>
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