In the wake of a hacking attack that exposed some of the personal and financial information for hundreds of thousands of customers at the one of the largest lenders in the U.S., a new study shows that many institutions don’t do enough to protect borrowers from fraudulent credit card debt.
The study, conducted by Javelin Strategy and Research, found that while many lenders do a good job of resolving fraud once it takes place, many still trail in terms of preventing it from taking place. Fraud on credit card accounts currently totals about $37 billion a year.
“We have found that prevention features offer the highest return on investment, leading issuers to see that it is imperative to prioritize educating consumers on the current technologies needed for protection,” said Philip Blank, managing director for security, risk and fraud at Javelin. “We all know that the threat landscape is not going to change; however, the way that issuers and consumers respond to those threats will.”
Another major concern for consumers in data breaches is whether their Social Security number is exposed. Armed with that data, a thief would have a far easier time opening bogus accounts in their name.