Credit cards are one of the most important payment instruments we use in daily life. Especially with the advancement of technology, the rise of mobile payments, and the fact that almost all transactions can now be carried out through alternative distribution channels such as ATMs, credit card fraud is also diversifying and increasing.
The Card Protection Plan (CPP) is one of the options that can be applied to reduce the risk that arises when a credit card is lost or stolen, and to keep your card secure in advance.
CPP (Card Protection Plan) is a service specifically designed to protect credit and debit card information in the event of loss, theft, or fraud.
In other words, the Credit Card Protection Plan is an insurance plan for credit cards in the event that cards are stolen, lost, or defrauded.
What are the features of the Credit Card Protection Plan?
Easy Blocking: The only thing you need to do to subscribe to the plan is register your card information. In the event of theft or loss of the card, all you need to do is call the service provider and have all the cards linked to the plan blocked. This way, if you lose your wallet, you are spared the trouble of calling each bank separately.
Single Insurance Plan: Credit Card Protection services are single insurance plans covering multiple cards, such as credit cards and debit cards.
Fast Card Cancellation: The CPP service provider contacts the banks to which the misplaced credit and debit cards are linked in order to cancel them immediately. If the cards are stolen, any unauthorized spending is also paid by the CPP service provider.
Free Card Replacement: Under CPP, which also protects the card against loss, theft, and fraudulent use, the cardholder is also entitled to protection against fraud. In this case, the CPP service provider replaces the card as soon as possible. Since this replacement is carried out by the CPP provider on behalf of the cardholder, no fee is charged.
In a fraud application project we worked on, we used CPP for common point analysis. In the case of fraud at an ATM or merchant, we used CPP to identify the cards that transacted at the relevant ATM or POS during the time window in which the fraud took place, and to take action on those cards (temporarily blocking the card, fully blocking the card, sending an SMS to the customer, automatically calling the customer, etc.).
For example, when a card skimming case is detected at an ATM, the time the skimming device was installed and the time it was detected are determined; the cards that transacted at that ATM during that period are identified, and actions are taken regarding those cards and customers.
In short, CPP both protects customers and strengthens banks' hand against fraud.
