Discover’s PULSE network recently upgraded its debit fraud mitigation service and introduced an optional fraud blocking service to help financial institutions address the growing problem of debit card fraud attacks.
A study by PULSE found that financial institutions rank debit card fraud among their top two concerns. Approximately 20 percent of all debit cardholders in the U.S. have experienced fraudulent card activity in the last five years. The Federal Reserve estimated U.S. debit card fraud losses at $1.38 billion in 2011.
The new DebitProtect Fraud Mitigation system allows institutions to block transactions in real time to avoid any further card use, reducing losses and the impact on the cardholder. PULSE launched the system in 2007 and has continuously refined the system and invested in progressive technologies.
The company collaborated with Retail Decisions and Hewlett-Packard. ReD PRISM software was installed on HP’s NonStop servers. The system operates in milliseconds and detects high-risk transactions, alerting card issuers in seconds.
“This technology leap was necessary because fraud sophistication and speed are increasing, with fraud cycles becoming shorter, more varied and harder to detect,” George Danforth, the vice president of emerging products at PULSE, said. “DebitProtect uses unique PULSE data, scoring and analytics to monitor debit transactions at ATMs and the point of sale, and adds an additional layer of fraud detection to those provided by processors and in-house systems.”
PULSE’s DebitProtect Authorization Blocking service also provides enhanced fraud protection. The service provides real-time alerts and autoblocking features, as well as a suite of services including analytics, pretesting and fraud consultation.
“DebitProtect uses a layered approach to uncover fraud that might go undetected by other fraud systems,” Eric Lillard, PULSE’s vice president of fraud services, said. “Our team of experienced fraud analysts evaluates the breadth of transactions made daily and attacks across multiple institutions registered for the service.”