Credit card and Internet Banking fraud is a major problem for banking institutions and society.

If cardholders can be provided with a feeling of control and security, this will potentially increase spending habits and attract new customers to existing card issuers.*

Markets-Alert has developed a unique solution to the problem using it’s patented Real-Time Alert System technology, and by involving the card holder in the fraud detection process.

Markets-Alert’s “Card and Account Protection System” utilises:

• Real time scanning of all card transactions.
• Financial institution rule setting.
  Card holder interactivity; and
• Electronic messaging to card holders.

In the following sections of this presentation we will demonstrate and explain many of the features and benefits of the “Card and Account Protection System”.

Currently, electronic banking fraud is escalating because debits are generally only examined for fraudulent behaviour after the transaction has been approved. The examination process is usually carried out by neural network systems, looking for unusual debits via a break in the average spending pattern exhibited by the customer’s account data.

* Many studies have shown a direct correlation between fraud and reduced credit card activity. One such study conducted by PaymentOne in April 2003, found that for 70% of US Consumers the main factor for not using their credit card online was a concern about security.

There is a serious flaw with this approach. If a debit does not break the average spending pattern for an account the debit is considered valid until the customer disputes the transaction.

The CAPS system uniquely addresses this problem by allowing the pending transaction to be queried via the customer’s preset parameters before approval is given by the bank and / or card issuer. If the customer’s parameters are not met the pending transaction can be declined thereby substantially reducing the potential for fraud.

The CAPS approval process is carried out in a millisecond environment, ensuring current transaction speeds can be maintained.

In addition to querying the pending transaction, the CAPS system can alert the customer in real time to usage of their card or to transactions on any of their accounts based on their preset parameters. Wireless and other electronic communications means are utilized to send alerts to the pre-specified destination.

By utilizing the CAPS system the bank, customer and the merchant are made aware in real time as to the validity of pre-authorization transaction data.

If a purchase needs to be made that the customer had not previously allowed for in their preset parameters, the CAPS system cam be configured to accept a time and price sensitive Text to Voice code to unblock the preset parameters so the customer can proceed with their purchase. Once completed a Text to Voice Call can be sent to reset the account parameters.

This unique solution to fraud prevention now allows financial institutions to distinguish in a real time environment between valid and fraudulent debits before transactions are approved. Additionally, the data sets generated by customer parameters may be extremely useful for financial institution marketing teams, assisting in advertising direction and focus, as well as allowing a greater understanding of customer spending habits in a real time environment. It also re-introduces the trust factor from the card-holders's perspective.