Discover Card resolves identity fraud cases better than nearly two dozen other credit cards, according to a new study from Javelin Strategy & Research. Javelin analysts released the seventh annual Card Issuer's Safety Scorecard in September, ranking 23 lenders on identity fraud protection, detection and resolution. Discover's top ranking for fraud resolution helped it land an overall second place score on Javelin's report.
Discover Financial Services officials marked their second consecutive year at the top of Javelin's list by sharing some insight into the constant changes their security teams must take to ensure customer privacy. In a statement to reporters, Discover consumer banking president Carlos Minetti emphasized his company's commitment to restoring customers' accounts quickly.
Discover's cash back rewards cards include e-mail and text message alerts that help cardholders identify fraudulent transactions in real time. Fast action limits thieves' access to stolen credit cards, while Discover's $0 liability policy ensures that cardholders won't have to cover the cost of thieves' spending sprees.
Credit card security driving customer loyalty
Another Javelin study examined how credit card security measures inspire customer loyalty in unexpected ways. According to Javelin's seventh annual Authentication Report, customers often use fraud detection and prevention as a reason to select a particular credit card over a competitor's card. However, the report also reveals that complex identity theft countermeasures can help "lock in" customers to credit card and online banking accounts.
As more consumers post personal information online, banks can promote tougher methods to verify customer identity, say Javelin's researchers. Banks with physical branches can use their community presence to highlight new biometric technology and old-fashioned face-to-face customer service.
Online banks and credit card websites that rely on "knowledge-based authentication" can educate their customers about selecting more secure passwords and personal identification questions. Javelin's report notes that the process of selecting security measures gives banks a crucial opportunity to assure new customers about their commitment to identity protection.