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  Vecta on Pre-Block Fraud
  Pre-Block Fraud refers to fraudulent use of a credit or debit card in the period before the card holder becomes aware that the card has been compromised in some way.
  The card may have been lost or stolen and used by a third party before its loss is detected or its details and the holder's address and/or PIN may have been obtained in some other way sometimes allowing a copy card to be made and used.

Fraudulent users will want to avoid detection while using the card and will generally limit their use to locations like ATMs or those with compromised attendants where they can take immediate delivery of the goods or services being fraudulently purchased.

Digital Shopping is unlikely to increase fraud significantly since order fulfilment takes time and a verifiable delivery address is required.

Significant deviations from patterns of "normal" usage can be used to trigger additional verification checks with the legitimate card-holder.

Integration of smart chips into the card makes them harder to copy and may allow inclusion of biometric and other information to improve security. Biometrics, whether based on fingerprints, vein patterns, retina scans, or facial recognition all have limitations and demand substantial capabilty at the point of use.

In the meantime, increased use of Point Of Sale verification is reducing the time before potentially fraudulent transactions are detected.

  Pre-block fraud will remain a problem as long as there is no physical proof that the account owner approves the transaction. Until widespread use of a biometric to verify the owner's presence, efforts will continue to make card copying more difficult and reduce the time before suspect patterns of transactions are detected. Banks are under pressure to incorporate biometric measures to increase security substantially.

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