As you may know, MasterCard is currently developing anti-fraud systems, and Visa already has such a system. The MasterCard system will be released at the end of this year and will analyze cardholder data, merchant activity, and spending patterns. The information will generate statistics that will be used to target theft and unauthorized purchases.
Visa uses Cardholder Risk Identification Service (CRIS) and will soon use a similar product for debit and ATM transactions. The products will send card issuers information about a transaction shortly after it occurs. Then, each transaction will be given a suspicion rating, which the issuer can use to determine if action should be taken.
On paper, it sounds like a good idea: credit card companies developing fraud software with the goal of decreasing card fraud. But, some questions seem obvious: Will consumers know that a list of what they've purchased on-line, at their local mall, and over the phone is being generated? Will the data be used for marketing? Who will have access to it?
Put this one away under the 'watch' category.
