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Apps that protect against ID theft improve merchant fraud prevention

December 19, 2012

Criminals have many methods of stealing consumer identities, including armed robbery, mail theft, terminal skimming and data hacking.

Criminals have many methods of stealing consumer identities, including armed robbery, mail theft, terminal skimming and data hacking. In the digital age, an increasing amount of private consumer information is being transmitted through ATMs, credit card terminals, online bill pay and mobile transactions. This data is adding to what insiders call big data, which ultimately can be analyzed for trends, but also could be compromised by criminals in order to harvest identities. Companies collecting this data should invest in adequate security measures, particularly when integrating mobile devices with clouds. At the same time, new technologies can benefit consumers when it comes to measures for protecting private data, and businesses can use these models to develop enhanced security measures.

New apps allow consumers to monitor accounts for security compromises or charges that may have occurred due to identity theft. One app available in the United Kingdom allows users to immediately notify police when credit or debit cards have gone missing, triggering a freeze on spending. This could allow victims of robbery to more quickly settle their accounts, protecting against unauthorized spending. Businesses trying to strengthen merchant fraud prevention measures could also develop apps that allow secure transactions as part of mobile payment initiatives, which can strengthen brand confidence and ensure that security is enforced to the highest level.

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