Thanks to Short Message Service technology, the amount of money lost due to bank fraud can be reduced. Credit and debit card thieves can be thwarted when companies send out short text messages to customers alerting them of account activity, writes the website Mobile Marketer.
Often, consumers are not aware that their bank accounts have been hacked until they log in to their online account statements or are denied for a payment they know they have enough money for. By the time fraud is detected, a lot of money could have already been stolen.
But a text message to a bank customer's mobile device after every transaction can alert account holders to fraudulent activity almost instantaneously. After receiving a text, customers can respond immediately to either verify the charge or report fraud.
"Banks and other card issuers must implement SMS alerts for every transaction, allowing consumers to take part in the fight against fraud," says the site.
A text message could have saved one customer nearly $350,000, according to Technology Review. Cyber criminals based in Eastern Europe drained his company's bank account, but he didn't realize it until six days after the fraud began.
According to the website Scam Busters, nearly 2 million people in the U.S. have money stolen from their bank accounts each year, and the average loss is $1,200.