News & Views - Savantor
You are here:
/
/
/

Fraud systems

Friday, 16 March 2012
Fraud losses on UK debit and credit cards fell to £341 million in 2011, the lowest level in 11 years, according to the UK Cards Association.  The latest figures show that fraud losses on UK cards fell by 7% last year, from £365.4 million in 2010 to £341 million in 2011. Over the past three years, card fraud has fallen by 45%, bringing it to the lowest it's been since 2000.
According to the UK Cards Association, a number of factors have contributed to this situation. Obviously chip and PIN, MasterCard SecureCode and Verified by Visa, have helped and Banks, have increasingly sophisticated fraud detection systems available to them.  But are they using these systems effectively?  A comment on the latest figures from ValidSoft suggests otherwise.  Their view is that although the figures show a reduction in card fraud, what appear to be encouraging statistics disguise a less reassuring reality. ValidSoft believe that in recent months banks have been taking a far more aggressive approach to transaction declines and in the case of cross-border transactions, on average nine out of ten declined transactions are in fact legitimate.  This very blunt instrument approach to fraud reduction may reduce absolute fraud, but it also causes widespread consumer dissatisfaction and costs the banks highly in lost revenue and administration costs.
Are ValidSoft right in this view?  I know from personal experience that there are systems in operation that can adopt a far more sophisticated approach resulting in fewer declines.  If those systems are not being used to their potential and to the benefit of consumers then why not.  It may be easier to use the blunt instrument approach but surely as an industry we’re better than that aren’t we?
Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

EMV Migration Planning

"It was a strategic imperative for the bank to be EMV compliant for our payment cards and the experience that Savantor brought to the company has proved to be invaluable."

Eddie Sweeney, Chief Technology Officer - AIB Bank - Ireland

Card Migration

"I was impressed by the speed with which the Savantor team were able to start delivering and as a team they have made a significant contribution to the success of the Programme."

Bjorn Niels, Programme Director - ABN AMRO Bank - The Netherland

Commercial Card Migration

"Execution at its best. We're delighted that this project has been truly outstanding and received an award from 'The Banker'. Savantor provided crucial expertise that helped us keep all our promises in terms of delivery. The scheduling, planning and control regime throughout was excellent."

Chris Mason, Director - Commercial Cards EMEA - Citi - UK

Interchange Review

"Savantor did a superb job in confirming what we believed was an area of weakness. The detail we now have will enable us to agree internally what we need to do to improve structure, control and income. Nationwide management were very impressed with the quality of the Savantor team."

Adam Slater, Senior Manager - Banking - Nationwide Building Society - UK

Credit Risk Review for New Product Launch

"We needed expert help at short notice and Savantor were very impressive in their response and knowledge. The results were very clear and useful, enabling us to quickly make good progress on the next steps."

Sami Karhunen, Head of Business Intelligence and SME Sales - Point Transaction Systems Oy - Finland

Collections Transformation

"Savantor did an absolutely superb job for us on the Collections programme. The professionalism, hard work, courtesy and tenacity of their experts is a credit both to the individuals and to Savantor."

Peter O'Dea, Senior Manager - Collections Department - Permanent tsb bank - Ireland

Payment Specialists

"Working close with Savantor's professionals over the years in the payment arena. I appreciate the skills and knowledge these guys have and will surely engage with them when opportunities arise. The current engagement with Savantor is full to satisfaction and beyond."

Idsert Walta, Head of Banking Categories - Nordea - Scandinavia

Issuer and Acquirer Transformation - Assessment and Mobilisation

"We were in urgent need of external independent expertise to supplement our internal resources. Senior consultants had to quickly integrate with a diverse team from across the bank and actively contribute. I am pleased to say that Savantor was able to deliver on our needs as well as being good people to do business with."

Lars Bostrom, Head of Cards - Nordea - Scandinavia

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.