AT&T is very confident that it will soon be able to use location-based information from customers’ cell phones to determine whether or not a credit card purchase was legitimate. So, how exactly does this type of fraud protection work?
According to an AT&T press release, the mobile company is working on a pilot program that will confirm the location of participating customers who opt-in to the advanced protection when they travel internationally.
Essentially, AT&T would use its network data to find a participating customer’s phone and then detect any change in location. For example, AT&T can confirm if a customer flew from one city to another when that customer turns his or her phone back on upon landing. Then, if a charge was attempted in another city during that flight, the transaction would be declined.
AT&T Vice President of Business Digital Experience Laura Merling said in the company release that companies want to be able to solve challengers and get ahead of their competition.
“Our new Location Information Services API does that by allowing enterprises to provide an extra layer of credit card security, keep track of valuable assets, and enhance a traveler’s experience with timely local information.”
According to Bloomberg, AT&T is one of several companies that are developing fraud detection services with location-based technologies.
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