How we prevent fraudulent transactions

Published on

You've just received an automated phone call from someone claiming to be "fraud prevention" calling on behalf of Webster Bank. They want to verify recent debit card transactions with you, but you know that you haven't used your card in days. Now you're thinking this could be a phishing call…or not. Maybe someone else made the fraudulent transactions in question!   We've talked about how debit and credit cards become compromised, and we've talked about how to prepare for a vacation so that your card continues to work while out of town, but what is the bank doing to prevent fraudulent transactions? Like most other card issuers, Webster Bank has a group dedicated to protecting your money and preventing fraudulent debit card transactions from hitting your checking account.

How we spot and prevent fraudulent transactions from hitting your account

  • Neural networks monitor all card activity to help detect and prevent fraudulent transactions from being authorized (once authorized, transactions must be paid). The system looks for suspicious transactions outside of your normal spending habits.
  • Identification of points of compromise and isolation of the cards that could be used for fraudulent activity, and reissuing new cards to those affected customers.
  • Webster has internal authorization strategies that attempt to decline fraudulent transactions based on known fraud patterns.
  • Daily purchase and withdrawal limits help to limit the losses if transactions are missed by our fraud monitoring systems.

Back to that weird phone call about suspicious transactions. This is a service that Webster uses to help reach our customers to verify whether or not the suspicious transactions are fraudulent. This service monitors card activity and fraud trends for card issuers all over the country and they use all of that information to identify possible fraud.

When a transaction, or a series of transactions, is determined to be suspicious, an automated phone call will be made to the customer to verify the transactions. In some cases, they will block the card to prevent further transactions. The confirmation of fraud or no fraud helps them to adjust their strategies to narrow down specific fraudulent merchants and purchase patterns.  

If you have questions about the validity of one of these calls, please contact Webster Bank and we can help determine if they would have tried to reach you or not.

These various layers of security could also deny legitimate transactions, which can be an inconvenience, but so can an empty checking account due to fraudulent transactions.

How to help protect yourself

  • Make sure Webster has your current phone numbers
  • Notify Webster of any travel plans (see a financial travel checklist)
  • Notify Webster if you plan to make some large transactions that deviate from your normal spending
  • Monitor your accounts daily

  It’s never fun to become the victim of fraud, and we’re working hard to prevent that from happening.

 

You may also be interested in:

You may also like

article

IRA vs. 401(k): What savers should know

As of 2018, about 58 million Americans had a 401(k), while around one-third of households owned an individual retirement account (IRA).1, 2 Yet for as commonplace as these retirement accounts can be, the nuances of contributions are a bit…

article

Retirement income planning

For investors approaching retirement, it is important to begin thinking about retirement income planning. This involves a mindset shift from accumulating an investment portfolio designed for growth to creating a portfolio of retirement income designed…

article

Key tax deadlines for 2021

While the 2020 tax year saw some significant changes to filing deadlines due to the effects of the global pandemic, the 2021 tax season seems to be set to be on track with normal filing deadlines. With the pandemic still in sight, it is important to…

General Disclosures

The opinions and views in this blog post are those of the authors, and are not intended to provide specific advice or recommendations for any individual. Please consult professional advisors with regard to your individual situation.