Consumers are losing patience with their banks. Despite soaring fraud rates, banks and financial institutions are not doing enough to protect their customers from fraud.
One vital piece of data proven to prevent fraud is missing, and that’s authentic, accurate and unaltered location data. If banks are using location data at all, it’s likely just an easily spoofed IP address – which is of little or no value in fraud detection or prevention.
A far more reliable source is the location data that consumers are willing to provide to the banks when using their apps. However, most banks don’t even ask for this information – a security gap consumers only hear of after fraud happens, like an account takeover or a fraudulent online transaction.
“What I’ve heard multiple times is, ‘Why did [the bank] think I was in Detroit?’ I’ve never been to Detroit. Why did they let that through?’” GeoComply CEO David Briggs said in a recent interview with PYMNTS CEO Karen Webster.
‘Savvy’ Consumers Are Willing to Switch to a Bank that Uses Location Data to Secure their Accounts
“I think consumers feel that if the bank isn’t paying attention to [something like] that, it’s not good enough,” Briggs added. “Consumers who are a bit more savvy say they want a bank that’s going to be more diligent.”
In fact, in a new survey, a PYMNTS and GeoComply collaboration, the majority of millennials and Gen Zers would actually change their banks to one that uses location data in order to secure their accounts.
The infographic below offers more insight on the survey and the role that location data can play in protecting a consumer’s account from fraudulent transactions.
For a deeper dive into the survey findings, download the report, “Location, Location, Location: How Location Data Can Help Banks Prevent Online Fraud.”