In recent years there has been a drastic increase in debit and credit card frauds as cybercriminals are leveling their game up with their spiteful techniques and fighting the security checks.
With consumers becoming more comfortable with sharing their locations, banks have developed a new security service to protect and safeguard banking processes and consumer trust with the help of geolocation mobile applications. Credit card locations, as well as the position of the customer’s phone, can be traced using these applications.
Let’s take a closer look at what a geolocation application is and how banks are using it to combat fraud.
What is geolocation technology?
Geolocation is the use of technology to track locations through GPS, IP address, WiFi access of an electronic device. It uses an individual’s positioning system to track its whereabouts or a physical location through mobile phones or laptops.
Geo-technology is used by various financial institutions for its security and privacy purposes. Let’s look at how geolocation works in practice- When you use a search engine to identify nearby restaurants or retailers, your smartphone makes use of geolocation services to choose the best option.
The financial industry must inform customers about how geolocation apps work and how their data will be used in order to retain their trust. Its primary objective is to gather important information of all internet users while emphasizing the need for security and fraud protection.
Mobile geolocation applications for minimizing unauthorized transactions
Knowing where the person is located is a huge technological advancement to combat fraud. Banks are always looking for solutions to make their services more secure and transparent. Statista report says that mobile phone users will tend to increase by 100 million in the next few years which makes it easier for banks to trace the transactions with the help of geo-location.
For all credit and debit card customers, many banks are now adopting location-based surveillance. Many people are afraid that the bank records all of their movements, but technology merely captures bits of information, such as the location of your mobile tower.
People can also create location-based restrictions in geolocation apps, which prevent transactions outside of a certain radius. When the card is used outside of the designated areas, it becomes easier to identify fraud or unusual activity.
As a result, banks are including geolocations into their apps to keep tabs on their customers’ whereabouts and prevent any suspicious transactions.
Benefits of geolocation application
- It provides a personalized financial security experience to the customers.
- Improves the level of security by providing customers the location-based restrictions.
- It helps provide the location of the card as well the cell phone or device to reduce the chances of fraud.
- It makes digital transactions easier and safe, it also highlights the prevention of money laundering or any kind of financial fraud by terrorists.
- It notifies the bank and the customers about any unusual transactions or changes in the pattern of transactions.
- Geolocation applications always ask for customers’ approval that also results in the benefits such as providing customers with extra services and bank benefits like discounts.
- It gathers customers’ niches depending on their financial transactions which helps generate advertisements according to their requirements.
How can banks use geolocation technology?
- E-wallet and card authentication –
Banks were paying millions to tackle the problem daily due to an upsurge in card transaction fraud. They can now determine the location of clients using geolocation-based applications, IP addresses, and geographical intelligence system technology. Fraud is less likely to happen as a result of such technological advancements. - Fraud detection and reduction –
Banks can use geolocation to determine the distance and time between transactions, as well as identify any unusual transaction patterns. This allows banks to promptly halt the operation if it is discovered. This lessens the harm done to both banks and customers. - Geolocation for local convenience –
When it comes to daily financial services, customers want convenience. As a result, banks can use geolocation to investigate their client’s everyday banking activities in order to make changes, improve their applications, and present them with useful information. - Geo-relevance –
Geo-relevance refers to determining a customer’s browsing activity based on their GPS location and using that information to advertise in multiple locations, such as social media. This allows banks to better understand their client’s goals and requirements and reach out to them with better baking choices such as home loans or vacation packages.
Conclusion
The competition between fraudsters and security officials has always been in the banking industry. The hackers and gamblers are always coming up with new tech-savvy schemes whereas banks are also ahead of their activities.
Bank’s top priorities should be customer pleasure and security. Banks can protect their customers and themselves from fraud by completing security criteria with the use of geolocation technology.
Jellyfish Technologies creates the best geolocation solutions for clients to help them run their businesses more efficiently.
