Ondot Systems, a US-based provider of mobile card services, and payments service provider Elan Financial Services have updated the My Mobile Money app with the addition of two-way fraud alerts for Elan processed debit cards.
The newly introduced fraud alert feature will enable its customers to review recent transactions and flag the fraudulent ones directly from the app, through which notifications are sent to Elan to investigate the transaction and replace the card if needed.
Financial institutions can directly communicate with debit cardholders to confirm a transaction which reduces fraudulent activity, or false positive card blocks. The new feature also saves time as it reduces the need for cardholders to call their financial institutions to report fraud.
Elan Financial Services president Troy Cullen said: “Our financial institution clients are always looking for new ways to provide their debit cardholders with fraud prevention options. By working with Ondot to provide a mobile fraud alert service, we are empowering consumers to keep an eye on their card activity, whether they are shopping at their local grocery store or reviewing their transactions.”
Ondot Systems president and director Vaduvur Bharghavan added: “Traditionally, when Elan has reached out to their financial institutions’ cardholders via phone to alert them to potentially fraudulent activity, they have less than a 10% chance of reaching cardholders on the first try. This results in higher rates of false positive fraud blocks and missed fraudulent activity.
“Through our integration with Elan, the notification of a potential fraud situation is in real-time through a mobile app push notification, which significantly increases the contact rate and helps financial institutions and their cardholders work together to identify fraud, without cutting access to their debit card.”