Mastercard and NameProtect have unveiled an anti-fraud venture.
‘Phishing’ attacks, which use unsolicited emails to direct consumers to bogus banking sites or ask for personal financial information, are seemingly on the increase. Several large financial institutions around the world, including Lloyds TSB, Barclays and National Australia Bank, have found themselves targeted over the last year. According to the most recent data from the Anti-Phishing Working Group, there were 1,125 unique attacks in the US in April alone – a 180% increase on the previous month.
Other forms of card fraud are also on the rise, with identity theft seen as a particular threat. The Federal Trade Commission reported that identity theft has been the number one consumer complaint in the US for the past four years. The central players in credit card and identity theft are criminal syndicates who sell tens of thousands of stolen credit card numbers through illegal websites.
The MasterCard/NameProtect alliance will attempt to actively combat such activities by dismantling online tools and venues used by identity thieves before they can exploit them to steal personal information from unsuspecting consumers.
As part of the arrangement, NameProtect will use its detection technology and systems to monitor domain names, web pages, online discussions and spam email to identify online trading rings, phishing attacks and other forms of online fraud. MasterCard will then be able to report illegal sites to the law enforcement authorities.
MasterCard’s move is a welcome one, as it demonstrates a proactive approach to addressing the issue of digital fraud. Financial services providers, especially banks and card issuers, increasingly recognize the value of online operations because it allows them to streamline certain cost-intensive business processes, and it appeals to their customers because it is quick and convenient to use. However, consumer confidence in the security of online banking will only be maintained if companies can demonstrate that they are capable of tackling the fraudsters effectively. MasterCard’s partnership with NameProtect is a commendable step in this direction.
