In a doubled-down effort to reduce credit card fraud, banks are trying new ways to answer a very important question when it comes to your credit card security: Is this really you?
Banks begin to roll out location tracking to cut down on fraud
Now, as reported by the Wall Street Journal, credit card companies want to use phone location tracking to make sure customers’ credit card use matches their location as a tool to combat fraud.
According to CreditCards.com, the number of instances of credit card fraud has skyrocketed in recent years. In 2015 the website reported about 31.8 million U.S. consumers had their credit cards breached in 2014; three times that of 2013. In fact, when it came to all fraud in 2014, 32 data records were stolen every second.
One of the first banks to use location tracking will be U.S. Bankcorp, but customers will need to opt-in in order to use it. Following suit, Discover Financial Services and USAA, the military bank, plan to offer comparable services in the future.
Some benefits of location verification are that banks could save money and customers would have their cards declined less when they travel — 30% less, according to Visa.
But, like so many new fraud prevention methods, this will require consumers to give banks permission to access even more of their personal data.
Would you allow your bank to use your location to cut down on fraud?
Read more: New way to opt out of mobile tracking