A survey released today by Alaric finds that, in the last year, one in four people surveyed in the United Arab Emirates has experienced the frustration of a credit or debit card payment being declined, because the bank incorrectly thought it was fraud.
Seven per cent of people surveyed had experienced this three times or more in the past year – representing more than half a million people, said Alaric in a press release.
The survey also showed some interesting differences in attitudes when it comes to consumers and their attitudes towards fraud and their cards, it said. For example, 27 per cent of respondents in UAE aren’t interested in having the ability to set restrictions on how their card is used (for example limiting spend to certain countries, types of retailer, online or offline etc).
Three per cent said they never even think about being a victim of fraud, and 11 per cent admitted they don’t always check their bank statements – they trust their banks to spot any fraud that occurs. However, 81 per cent would like the option to receive an alert on their mobile phone whenever their credit or debit card is used, to help them manage their card accounts.
“When a bank blocks a transaction incorrectly, because it thinks it is fraudulent, but in fact that transaction is genuine, this is called a false positive. These false positives are expensive for the bank – both in terms of customer satisfaction, and the process involved in having to remedy the mistake,” said Tausif Ahmed, Director, Middle East at Alaric, a global supplier of fraud prevention and payments solutions.
He continued, “It is interesting the different attitudes that the respondents have towards fraud, with a relatively high percentage admitting they don’t always check their bank statements, yet so many wanting to be able to use their phone to monitor all the activity on their cards. Perhaps this goes to show that, provided it is minimal effort for them, they are happy to be part of the process of protecting their cards, but ultimately they think it is the banks’ responsibility.”