SAN FRANCISCO — Visa USA announced April 20 the addition of a new layer of technology to help its member financial institutions reduce application fraud losses and account takeover fraud. The new fraud-fighting efforts is being developed through an association with Chex Systems Inc., a wholly owned subsidiary of eFunds Corp., and will be available through Visa to its card-issuing members.
Visa and eFunds are providing the tool to fight fraudulent consumer card applicaitons and change-of-address-based identity theft. Specifically, issuers will screen their Visa debit and credit card applications and change-of-address requests against an enhanced database to verify a range of information variables such as address, phone numbers and bankruptcy information.
"Only Visa provides this new level of industry initiative, helping to drive down fraud and operating losses for Visa members," said Jean Bruesewitz, senior vice president, Visa USA. "Combined with Visa's industry-leading risk management services, these new services will further assist our members to reduce fraud losses."
"Losses due to account application fraud, account takeover and identity theft are critical challenges for card issuers to address," said Rahul Gupta, senior vice president and division executive at eFunds. "By adding fraudulent checking account information to Visa's risk management services, Visa's members will have access to enhanced data and new capabilities to improve their decisions and reduce fraud losses."
This new service joins the Issuers' Clearinghouse Service, an application verfication database populated with Visa and MasterCard application and fraud data. Full availability of this application tool is scheduled for the third quarter of 2005.
