Prevention is Hardest Fraud Stage to Solve but Security-Minded
Issuers are Implementing New Features
SAN FRANCISCO–(BUSINESS WIRE)–Today JAVELIN (@JavelinStrategy) announced the 2016 Consumer Identity
Safety Leaders for credit card issuers: American Express, Bank of
America, Capital One, Chase, Citibank, PNC, SunTrust, USAA, and Wells
Fargo. JAVELIN’s 2016
credit card issuers’ study scored 20 of the nation’s top credit card
issuers – providing insight into how the customer‐facing security
measures of credit card issuers are mitigating current fraud trends and
areas for improvement.
JAVELIN uses its Prevention, Detection, and Resolution Model® assessing
the account security features of the nation’s top credit card issuers.
The Prevention stage is the hardest stage to excel in staying ahead of
fraudsters yet it is critical for adopting new features to mitigate
risk. Only the top 5 issuers awarded by JAVELIN scored over 50% in
prevention category, mainly by offering expanded features around
customer-defined controls, online and mobile authentication.
The Resolution category saw great strides in advancements. Card fraud is
highly pervasive with over 50% of identity fraud victims having at least
one credit card account compromised on average. While card fraud
dominated the identity fraud landscape, issuers were adept at resolving
these incidences quickly. Two-thirds of card fraud victims whose issuers
initially detected the fraud spent one hour or less to resolve the fraud.
“Protecting customers’ accounts is an enormous task, and, unfortunately
for issuers, it’s often one that the customers themselves don’t make any
easier. Customer-defined controls are an area where issuers still have a
great deal of untapped opportunity for securing accounts”, said Al
Pascual, Research Director and Head of Fraud & Security at JAVELIN.
“Customers’ direct control over the authorization of transactions
outside of a specific geographic area or at certain types of merchants
can help issuers sidestep the process of analyzing data to identify
fraudulent transactions, which is fraught with pitfalls.”
USAA receives ‘Best in Class’: USAA edged out Bank of America
to take the “Best in Class” longstanding title by one percentage
point. USAA distinguished itself across the board with a robust
feature set in every category, but is especially noteworthy in
resolution for offering all features under evaluation. They offer
credit monitoring, public information monitoring, and identity fraud
insurance as add-on features, unlike most other issuers.
Prevention is one of the hardest categories for fraud: Bank of
America, USAA, Citibank, American Express, Chase and PNC standout from
the rest of 20 credit card issuers JAVELIN evaluated. They succeeded
by offering expanded features around customer-defined controls,
online, and mobile authentication.
Detection features the greatest divide among issuers: The top 5
credit card issuers in this category were: USAA, Bank of America,
American Express, Wells Fargo and Capital One. These winners scored
72% to 97% of possible points, compared to an average of 28% and 51%
for the fourth and third quartile of issuers. With the anticipated
growth of account takeover, alerts around risk indicators, such as
cash advances and changes of certain types of personally identifiable
information (PII) provided major distinguishing factors for these
Resolution remains the most broadly implemented category: USAA
and PNC tied as leaders in resolution with perfect scores, closely
followed by a tie among Bank of America, Citibank and SunTrust.
Expedited card replacement and the ability to report a lost/stolen
card from a mobile device distinguished top issuers in this category.
The study profiles the following credit card issuers: American Express,
Bank of America, Barclays, BB&T, Capital One, Chase, Citibank, Citizens
Bank, Commerce Bank, Discover, Fifth Third, First National Bank of
Omaha, Navy Federal Credit Union, Pentagon FCU, PNC, SunTrust, TD Bank,
USAA, US Bank, and Wells Fargo.
Learn More about Report: 10th
Annual Credit Card Issuer Identity Safety Scorecard
JAVELIN, a Greenwich Associates LLC company provides strategic insights
into customer transactions, increasing sustainable profits for financial
institutions, government, payments companies, merchants and other
technology providers. JAVELIN’s independent insights result from a
uniquely rigorous three-dimensional research process that assesses
customers, providers, and the transactions ecosystem.