The U.S. Bank has unveiled that it is attempting to stop fraud by using consumers’ mobile phones geolocation to determine if a consumer’s card information matches that of its phone, according to a report by American Banker.
Nowadays, it’s no longer possible to walk down the street without seeing someone on their phone. Nor is it possible to avoid the threat of fraud or identity theft, which targets people all over the world.
Now, though, in a bid to stop fraud the U.S. Bank has announced that it may have the solution to this: by utilizing a mobile phone’s geolocation by pinpointing exactly where a customer is and if it matches the location of their card.
The bank is hoping that the Geolocation Service, developed by Visa, will reduce the risk of fraud, helping to ensure every transaction that a customer makes when they are away on holiday or in their hometown.
Customers who own a U.S. Bank FlexPerks Visa credit card can opt-in to the service through the FlexPerks mobile app. It can also be accessed through the Elan mobile app.
Banks Behind the Curve
This, however, is not the first time that geolocation and mobile phones have been used. According to American Banker, retailers have used these before for marketing purposes. For example, by automatically checking someone into a location.
Dominic Venturo, U.S. Bank’s chief innovation officer, said financial institutions may be well behind the curve as an industry.
In reference to the number of transactions declining when customers leave town, he said:
We started with credit where credit and mobile intersect. We had an interesting problem to solve, it’s a common occurrence.
The U.S. Bank is not the first company to harness the ability of geolocation.
Citigroup is also turning its attention to it by undertaking a Bluetooth pilot that provides customers with cardless access to ATMs after operating hours. While Wells Fargo, which recently lost its title of the U.S.’ biggest bank, is testing a system that identifies people as they walk into its branches.
The Rise of Cybercriminals
Through the use of geolocation, it is possible to help prevent fraud particularly in a time when criminals are becoming savvier at gaining access to people’s information.
Not only that, but with banks spending more money on fighting cybercrime, it shows that more needs to be done to prevent fraud and identity theft.
While not everyone may be particularly happy with their bank knowing exactly where they are when they make a transaction, it could be the way forward to targeting the growing issue of fraud.
Featured image from Shutterstock.