House of cards
Banks are under increased pressure to combat global credit card fraud as the economic crisis continues, but they are precariously balanced between annoying customers by doing too much and risking their reputations by doing too little. David Benyon examines their various approaches
Financial crime has risen in tandem with the global economic recession. While large-scale frauds by hedge fund conmen or rogue traders have hogged the headlines, retail, credit and debit card fraud presents a more immediate threat for banks. As the availability of consumer credit reduced and default rates rose, credit card fraud exploded. MasterCard and Visa both report rising fraud levels, as a percentage of sales, and for banks, already made leaner by the crisis, the question is how well
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