/ ViolaCorporate

How prepaid cards can alleviate fraud from a data breach

In the past 3 months, company data breaches and fraudulent attacks have been in the news across the world with victims such as Ticketmaster UK, Dixon Carphone Warehouse and most recently British Airways.

But who is the real victim in these cases? A company who has allowed their system to be susceptible to fraud or the customer that trusted a company with their personal and financial details who now has to deal with the consequences of the fraud?

The attacks usually involve customers' personal information being stolen and at worst, their card details. Companies are quick to respond to assure their customers that everything is under control and that they are taking immediate action in contacting the affected customers.

A good recent examples of how a company attempts to compensate the victims is by Ticketmaster UK. In June 2018 Ticketmaster UK had issued an email to all affected customers, letting them know that they may have been potentially affected by a data breach and may have had their payment details stolen. Ticketmaster offered a 12 month identity monitoring service with a leading provider to help educate and resolve any future fraud with the current customers. During and after the events of the data breach, this is all that companies are capable of offering to their customers.

There are a number of ways you can prevent yourself from being a victim of fraud. Never share your PIN with anyone, be vigilant when using an ATM as well as be aware of your real-time spending, which is often harder to do with legacy banks as transactions can take up to 3 days to appear on online statements.

However, with the current growth in the fintech industry, especially within the prepaid business debit card sector - we see how they can be the safest and smartest way to make purchases, online and in store.

Benefits;

  • Real-time spending overview

  • No visible and direct connection to debit/credit bank cards

  • No overdrafts offered

With prepaid business debit card you only load the amount you need to spend. When using ViolaCorporate, no personal banking details are stored and therefore can’t be exposed to anyone it shouldn’t be.

For example the case of British Airways, imagine you have made a purchase two weeks ago on your business credit card. You purchased return flights from London Heathrow to New York for your business trip. You pay and that’s it, you haven’t thought much about it since.

Two weeks go by and you are notified that you have been a victim of fraud through your British Airways purchase. Your company’s credit card details may have been cloned and high credit transactions have gone unnoticed due to no real-time spending overview on your online statements. Your access to the account is temporarily denied and you have to spend a lot of time on the phone to British Airways trying to resolve the fault. A breach of any size could cost the company a harmful amount of money and a lot of time spent on the phone to the bank.

But what if you had used a ViolaCorporate prepaid business debit card instead? Here’s the example again:

You have made a purchase two weeks ago on your ViolaCorporate prepaid debit card, which has been previously loaded with the amount needed to pay for flights. You purchased return flights from London Heathrow to New York for your business trip. Select pay and that’s it, you haven’t thought much about it since.

Two weeks go by and you are notified that you have been a victim of fraud through British Airways. Your prepaid debit card would not be affected by high credit transactions as the account only holds the amount you had previously uploaded and the account does not have an overdraft. The company’s bank account won’t be affected as there is no link to the account information. With ViolaCorporates notifications on purchases in real-time help you to be vigilant against suspicious activity on your account. Worst case scenario, simply block your card through the app or web portal and re-order a new card. You can always speak to our customer service who are always happy to help you with any problems you may encounter.

Prepaid business debit cards can really help you be in control of your funds while real-time spending let’s you keep on top of all your business spending. Fraud and data breaches happen and it will continue to happen, make sure you are protecting yourself and your business with the use of Prepaid Debit Cards.

How prepaid cards can alleviate fraud from a data breach
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