While new technologies are making it easier than ever for unauthorized users to access account information, financial institutions are working hard to protect your company's corporate accounts. A 2010 ACI Worldwide Global Card Fraud Survey of 4,200 consumers reveals the following: while the percentage of consumers who have experience fraud has increased from 18% in 2009 to 29% in 2010, the percentage of consumers who were satisfied with their financial institution's response to fraud has similarly increased from 75% in 2009 to 79% in 2010.
Protecting your company from fraud is important. Your financial services provider plays a role in your account's safety, but you should understand how you can protect your company as well.
Your financial services provider
The first step in protecting your company is to make sure you are working with a financial services provider who has a strong risk management department. At most financial services companies, this kind of department will track spend patterns across all accounts and also across each company's accounts. Once patterns are recognized, these teams can tell when any transactions occur outside of normal patterns, signaling a suspicious or fraudulent transaction. A strong risk management team will have systems in place to ensure you are contacted immediately when suspicious activity has occurred on your account. The ACI Survey shows that 54% of consumers want to be contact by mobile means - either a phone call or SMS text - if there is suspicious activity on their accounts.
What else can you do?
1. Set limits on your cards and accounts. Several financial services providers have advanced platforms that allow you to set your own controls and limits on accounts. If you only want purchases to be made at certain times of the day, at certain retail locations, or below certain dollar amounts, these providers will work with you to establish these types of controls.
2. Educate your cardholders. Chances are, the more your employees know about their cards and the limits set on each, the more precaution they will take in safeguarding them. You may also want to consider educating your cardholders on the different kinds of card fraud to look for, including skimming, dumpster diving, and social engineering.
3. Monitor your accounts. Since you are the person most familiar with your company's spend, it is possible that you may notice suspicious activity on your accounts before your financial institution. Keeping a close eye on transactions and making a habit out of pulling reports can go a long way in protecting your company from fraud.
Comdata offers a comprehensive suite of Enhanced Authorization Controls to help you effectively mitigate card fraud. With a state-of-the-art technology platform to monitor card transactions, as well as options for additional restrictions and enhanced reporting, Comdata can customize an enhanced authorization controls program to meet your unique business needs.
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