Indian FI tests mobile-based solution for ATM fraud prevention
The location-based solution operates on the assumption that cardholders generally carry their mobile phone when visiting the ATM.
India's HDFC Bank has partnered with National Payments Corp. of India to test a location based solution from Zumigo designed to prevent fraud while a transaction is being carried out at the bank's ATMs.
"If you have a smartphone, the location of the phone can be identified based on the telecom towers in that area," said HDFC Head of Digital Banking Nitin Chugh "[I]f the phone happens to be in another city ... we can determine whether to decline the transaction or send a confirmation call to the customer first before allowing it."
HDFC is still working on rules establishing the required proximity between between ATM and mobile, and whether the solution will be made available to all cardholders, the release said.
The bank has tested the solution in more than 20 locations. The release noted that, as NPCI also is involved, it is likely that other Indian banks will implement the solution if the pilot is a success.