Soon, banks will have software to check credit card frauds
By Ankit Sharma
Feb 12, 2013
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In view of the recent cases of credit card frauds, the National Payments Corporation and the Reserve Bank of India is pushing banks to sign up for the software that would check on customer spending patterns and throw up alerts if there is abnormality in the spending patterns.

The software would generate scores based on the customer's past spending habits, such as the amount, the variety of outlets and the frequency, among others, said a concerned person for implementing the process.

A pilot study will be launched in the few next months with a few state owned banks looking to implement the software.

"It is premature to say how it will work out, but it will grade the risks and draw a common thread in the nature of frauds," said a risk management official of Union Bank of India.

The National Payments Corporation proposal is to generate scores ranging from 0-100. Lower the score, greater possibility of a transaction going through easily. The closer it is to 100, the chances of rejection will be high.

A transaction at a score below 30 will be allowed to go through. But if a transaction draws a score between 30 and 70, the settlement body will send intimation to the issuing bank about a possible case of fraudulent transaction.


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