Banks are stepping up their game in the fight against online fraud with a new safety feature called ‘transaction confirmation.’ This feature sends an immediate alert to the account holder if there is any unusual or suspicious transaction initiated through their bank account, allowing them to either consent to or decline the transaction.
According to a report by the Economic Times (ET), major banks like ICICI Bank, HDFC Bank, and Standard Chartered Bank have already implemented this fraud prevention measure. Other banks are also following suit to protect their customers from potential fraudulent activities.
The system works by using a credit intelligence system to identify suspicious transactions that deviate from the norm and immediately alerting the account holder. The transaction is only allowed to proceed once the account holder confirms its authenticity.
Manish Agrawal, executive vice-president of the credit intelligence and control department at HDFC Bank, stated that the bank has implemented a monitoring framework across all channels, including UPI, Net banking/mobile banking, and credit and debit cards, to safeguard customers against potential frauds.
Standard Chartered Bank has also employed fraud risk management tools with detection and prevention capabilities to mitigate online and card fraud risks. These tools monitor suspicious activities by analyzing data such as device, location, internet connectivity, merchant type, transaction velocity, and value.
The transaction confirmation feature is not activated for all transactions initiated through the bank account, making it a selective and effective tool in preventing fraud. With banks using geolocation and IP address monitoring to identify suspicious activities, customers can feel more secure in their online transactions.