Could your smartphone's location capabilities help combat credit card fraud? AT&T seems to think so.
The carrier has launched a pilot program that would enable companies, including financial firms, to confirm the location of participating customers via its network data when they travel abroad. The technology, part of AT&T's Location Information Services portfolio, is intended to help card issuers lower fraud losses while eliminating certain hassles for consumers.
For instance, a customer who opted into the service wouldn't have to call their issuer before traveling to prevent their card from being flagged for fraud and blocked while on vacation. They also wouldn't have to worry about the card being blocked, should they forget to do so.
"We have the ability ... to push a notification to the bank," explains Chris Aron, lead product manager at AT&T, so "the likelihood of your credit card being declined is greatly reduced."
Of course, customers have to be comfortable giving the carrier the "OK" to share their location with their financial services provider in order to reap this benefit. Under the new program, opt-in information would be provided by the bank or card issuer utilizing the service, but AT&T says data-sharing is severely limited.
Companies will only be provided with a "yes" or "no" regarding whether a cardholder is where charges are appearing. AT&T doesn't get credit card data and financial firms don't get AT&T customer data, the company says.
The new service will be available to interested businesses later this year.
Would you allow your wireless carrier to share your location with your financial firm in order to mitigate travel hassles? Let us know in the comments below.
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