SMS Provides Ideal Method for Banks to Deliver Fraud Alerts
Banks are using increasingly sophisticated methods to detect potentially fraudulent activities on customer’s accounts. Contextual data such as the type of transaction being performed, the geolocation of the transaction and the device being used are just some of the data points involved in accurately and quickly discovering potential cases of fraud.
However, the process of alerting a customer to potential fraud on their account is often far less sophisticated than detecting fraud. Customers may receive a phone call a considerable length of time after the potential fraud was spotted, or they might learn that their account has been frozen when they attempt to make a purchase. Regardless of the method of alert, the customer usually has to spend time on the phone connecting to the right customer service representative to resolve the issue.
Text messaging provides an immediate delivery path that is unmatched by other forms of mobile communication. Banks can and do use SMS messaging to instantly contact a customer to approve or prevent a transaction that has been “flagged.” Customers are put into a “virtual queue” to talk to an agent as quickly as possible. This means less time spent waiting on hold to speak with a fraud specialist and a reduction of frozen accounts triggered by “red flags” based on legitimate purchases.
Download our Fraud Alert Use Case to learn more about how this works.