Why Credit Card Fraud Alerts Are Rising and What You Need to Know

The rate of credit card fraud alerts is increasing, and here’s why it matters to you:

What’s Driving the Rise?

  • New Shopping Patterns: Unexpected or high-value purchases can trigger alerts.
  • Lack of Monitoring: Inadequate use of fraud detection services and security measures.
  • AI and Fraud: While AI helps detect fraud, it can also cause false alarms.

How AI is Involved:

  • Fraud Detection: AI improves fraud detection, but can also lead to more false alarms.
  • Fraud Prevention: Fraudsters use AI to commit fraud more rapidly, but AI also helps detect these activities.

How Technology is Helping:

  • Better Detection: Mastercard reports a 20% increase in fraud detection accuracy and up to 300% improvement in detecting fraud without false alerts.
  • Quick Verification: Technology now allows faster resolution of false alarms, sometimes within minutes.

Tips to Minimize Unnecessary Alerts:

  • Monitor Your Accounts: Set up monitoring services and limit alerts for large transactions.
  • Use Secure Methods: Employ two-factor authentication, biometric passcodes, and password managers.
  • Shop Wisely: Use reputable sites, limit card usage for specific transactions, and avoid public Wi-Fi for purchases.

Stay Vigilant:

  • Always pay attention to fraud alerts, even if they seem frequent. Ignoring them could leave you vulnerable to fraud.