Forum: Banks can do more to help customers prevent fraud
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I refer to the letters “ Having fewer credit cards can make it easier to detect fraud Ill-considered to expect banks to eliminate fraud entirely
There needs to be a balance in the efforts put in by banks to detect and prevent fraud in the use of credit cards. For prevention efforts, both banks and their customers have a part to play.
Banks equip customers with preventive tools which they use to protect themselves.
I feel that banks can do more to streamline the industry’s controls available to customers and minimise the fraudulent use of their credit cards. They need to also publicise features that are already in place.
While banks these days already provide auto-alerts to credit card users whenever a preset threshold spent amount is exceeded, and for setting the date period for activating their cards for overseas use, the current controls can be enhanced and standardised in the industry.
For instance, one bank I use provides for restriction of credit card use by country when setting the activation for overseas usage. Another does not. Some deactivate overseas usage by default while others don’t.
If the customer is not savvy, he may not be fully aware of how he can help himself to the existing tools provided by his bank.
Banks should make it a point to provide a brochure on the controls that customers need to be aware of and how to manage them before using a credit card. A fresh brochure should be issued whenever the controls are enhanced.
The approach taken by banks to educate their customers on self-help controls available to them for preventing credit card fraud can similarly be applied to bank transfers.
Unless the customer explores, he may not know about resetting the default transfer limits for various types of transfers to a level that he is comfortable with.
Chong Ching San
