enumerative account testing to identify validly issued cards and solve card issuance strategies. To make it more difficult for fraudsters to predict patterns, it’s our recommendation, and industry best practice, to randomize card issuance in your assigned bank identification number range. Think of it this way — randomization is the equivalent of finding a needle in a haystack. Who wants to go searching for that? Certainly not a criminal. ACCOUNT TESTING: THE FIRST SIGN OF FRAUD Fraudsters often test the waters on any cardholder information they may have illegally obtained by making a small transaction, typically under $5. If a test authorization is approved, fraudsters then use the information to commit more fraudulent transactions or sell the information on the dark web. The ability to detect these threats before they can cause damage is critically important. Review active cases and submit updates when you confirm the activity with your cardholder. Our fraud escalation team constantly analyzes fraud cases and is always available to help explore custom research and rule‑strategy options to respond to issuer-specific fraud trends. PROTECTING FINANCIAL INSTITUTIONS AND CARDHOLDERS Fraud is more complicated than ever. Having sophisticated tools to fight back is paramount for a financial institution’s fraud mitigation strategy. Review active cases and submit updates when you confirm the activity with your cardholder. If the cardholder can’t be reached or the activity can’t be verified, request to update the case status to “unable to confirm.” You can also adjust your financial institution’s daily limits. A daily limit on debit card withdrawals ensures the account associated with the debit card is safe and cannot be emptied in the event a person’s debit card is compromised. If your cardholders, in general, are not asking to raise limits, consider lowering them to better protect your cardholders and your financial institution. Financial institutions can go even further with card blocks. This gives you the power to manage authorization blocking at the primary account number (PAN) and BIN levels. You can implement blocks by combinations of criteria or just one for a specific amount of time or indefinitely. The wide array of available blocking criteria allows you to create blocks easily based on cardholder requests and fraud trends identified by your institution. Fraud investigations are a constant balance of risk versus convenience. It is important to remember even small fraudulent transactions can quickly become big problems for you and your cardholders if they go undetected. But by investing time and resources into fraud mitigation strategies you can reduce fraud losses for your financial institution and provide peace of mind for your cardholders. Ryan Dutton is an experienced fraud strategy manager with a 17-year history of working in the fraud detection industry, focusing on the management of payment card fraud. Ryan’s focus is managing payment card fraud. His work at SHAZAM gives him a front-row seat to the challenges facing community financial institutions. Having sophisticated tools to fight back is paramount for a financial institution’s fraud mitigation strategy. 10 | CURRENCY
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