“Alongside the constant optimization of our early warning system, the introduction of the new 3-D Secure protocol has also had a direct impact. Immediately following its introduction, we found that the number of fraud cases among our clients went down,” says Marcel.
Pickpocketing is on the increase again
At present, approximately 90% of all fraud attempts take place online. As these attempts are becoming easier to foil, an old-fashioned type of stealing is making a comeback: pickpocketing. The stolen credit cards are used immediately for shopping or withdrawing cash from ATMs. “Our early warning system recognizes this pattern and prevents it.” Credit card users can foil possible theft attempts in two steps: First, they can activate transaction notifications in UBS E-Banking or the UBS Mobile Banking App. They can then block their card in the UBS Mobile Banking App if it's being misused. A replacement card will be issued immediately.
The early warning system currently detects 85% of all fraud attempts automatically. The other 15% is reported by clients. In the future, client input will also be entered actively into the system so that credit card fraud can be prevented even more proactively.
In April 2019, the UBS Card Center won the “Security Innovation of the Year” award at the Retail Banker International Awards 2019. The international jury praised the excellent work of the team responsible for fraud cases. This team uses AI functions and machine learning on the FICO Falcon platform. In 2018, this approach stopped 84% more fraudulent credit card transactions than in 2015.