While there is a move to encourage use of mobile payment services like Android Pay, Samsung Pay, and Apple Pay, there is still that fear of security and privacy being compromised. You can’t hide the fact that mobile devices used in banking can be pretty useful but still poses potential risks not only to the mobile industry but also to the financial system.
It may be long before such payment methods become the standard but at least we know this area is advancing. Credit card fraud is something to be always wary about and one way banks can check on this area is by tracking the location of the customers through their cell phones. It’s just an idea but this one seems to be a smart way. There is also that problem of being misplaced or left at home and not being retrieved right away.
The idea is for the banks to know when a transaction is happening away from the card owners–checking the probability of fraud. The service is said be opt-in and one of the first banks to try it will be U.S. Bancorp and might be followed by USAA and Discover Financial Services soon.
Tracking a customer’s cell phone could help track potential fraud but it shouldn’t be the ultimate measure. The idea is simply for banks to know if the account or card owner is really in the same place or near the location of the cell credit or cellphone.
VIA: Time
