EXCLUSIVE: A centralized hub to share information about fraudulent debit and credit card transactions will launch before year-end, says Felaban head Giorgio Trettenero.
A first-of-its-kind debit and credit card fraud reporting hub is set to launch across Latin America before year-end.
The Regional Fraud Hub will allow Latin American banks to share information about fraudulent debit and credit card transactions. The hub will centralize and analyze information about debit and credit card fraud, looking for trends and patterns in the data.
Felaban, the Latin American banking federation, is establishing the hub with the aim of better detecting, preventing and anticipating fraudulent card transactions regionally.
“We’re going to create a collaborative system, to detect, prevent and get ahead of card fraud,” Giorgio Trettenero, general secretary of Felaban, told iupana.
The hub will seek to identify retailers where cards are cloned or used fraudulently, and the time frames of each incident. By analyzing information from multiple banks, the hub will be able to pinpoint such information better than financial institutions working on their own, Felaban said.
Additionally, Felaban hopes that by sharing information regionally about card fraud, participating banks will be able to respond more quickly to emerging threats, and reduce their cost of chargebacks and reissuing cards.
The hub in its first phase will launch before year-end, Trettenero told iupana. In a second stage, the hub could expand its monitoring capacity to cover other digital threats such as phishing attacks, he said.
“We need to have intelligent systems.”
The launch of the hub initiative follows a survey of banks conducted last year that highlighted their concerns about digital security. The survey of financial institutions in Colombia, Peru, Ecuador and Paraguay, showed that banks in those countries see cybersecurity as a top priority for applying new technology.
Virtually all banks surveyed in the four countries said that cybersecurity was “high” or “very high” priority when it comes to technology, according to the survey conducted by Anif for Felaban and CAF.
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