How to Strengthen Bank Card Risk Prevention

In recent years, with the continuous development of economy, China's bank card business has developed rapidly, the amount of cards issued by card-issuing banks has increased substantially, and the market competition has become increasingly fierce. As a result, the business risks faced by card-issuing banks are becoming increasingly apparent. Especially in recent years, criminals use self-service equipment to commit crimes rampant, causing direct or indirect losses to banks and cardholders. By analyzing the main risks in the development of China's bank card business at present, this paper seeks effective ways to identify, analyze, monitor and manage the risks of bank cards, with a view to further reducing the risks of bank cards and promoting the healthy development of bank cards. At present, among all kinds of bank card risks, external fraud risks are the most harmful. There are three main channels of fraud: ATM cash withdrawal, POS cash withdrawal (consumption) or network (telephone) transfer. Fraud means mainly include fake card fraud, directly defrauding customers' funds, and using ATM to defraud cards. The specific performance is as follows: (1) Post an "emergency notice" on the ATM in the name of a fake bank, asking the cardholder to transfer the account funds to the bank account prepared by the criminals in advance according to the prescribed operation steps. (2) Publish false award-winning information through SMS, and require cardholders to pay income tax and other expenses by transfer payment. (3) When the cardholder makes deposit and withdrawal or payment settlement at bank counters, ATM machines and special merchants, criminals peek at the cardholder's password, and then use the card number and other information obtained from the receipt discarded by the cardholder to make fake cards; Or take the cardholder's card and exit from the ATM, divert the cardholder's sight and change the card; Some criminal gangs also use cooperative transactions as an excuse to obtain passwords in the above way, and then borrow cardholders' cards to copy cards for reasons such as checking card numbers. (4) Add a card reader and a camera to the ATM and the access control, or install a fake password keyboard to copy the bank card information, shoot and steal the bank card password, and paste dry glue on the cash outlet of the ATM to create the illusion of swallowing the card. (5) After the card is stolen or lost, the cardholder's password is too simple or set to numbers such as phone number and birthday, resulting in the loss of funds in the card. (6) distract the cardholder and change the card; Pretending to remind cardholders to leave money and things, asking about the use of ATM machines, deliberately pushing cardholders, etc. , interfere with the normal operation of the cardholder, divert his attention, insert the same kind of fake bank card into the bayonet, and then continue to operate with the real card left in the machine. (7) Intermediary transaction risk mainly refers to the risk of the cardholder or card issuer's capital loss caused by the illegal transaction or operation of special merchants, which is mainly reflected in two types: some illegal merchants provide credit card cash transactions, resulting in transaction risk; Irregular (even illegal) credit card marketing behavior of intermediaries or individuals causes risks. For many risks and even cases of bank card business, there are often management loopholes in banks, such as the lack and negligence of extended management of institutions, weak awareness of compliance operation of counter personnel, imperfect credit risk control mechanism, inadequate training of operators and insufficient staffing of outlets. Banks should strengthen the risk management of bank card business through the following aspects. First of all, strengthen the publicity of cardholders' knowledge of safe card use. Banks should strengthen the publicity of cardholders' knowledge of safe card use through counter guidance, sending brochures and small card guides, and play the role of lobby manager, security guard and guide. Secondly, the ATM machine is inspected and managed irregularly. ATM managers should carefully check whether the camera recording and playback are normal, whether the card environment around the ATM is safe, whether illegal advertisements are posted, whether there are foreign objects at the ATM cash outlet, whether the camera is blocked, and whether there are sponges or dry glue marks above and at the exit of the password keyboard. Once traces of sponge or dry glue are found, the surveillance video should be taken immediately to determine the time of committing the crime, and a detailed list of bank cards operated on ATM machines during this time should be printed out. The bank card will stop payment immediately, and the other bank card will notify the card department or bank card customer service center of the other bank. At the same time, a remote real-time monitoring center is established to give early warning when abnormal behavior occurs, so as to prevent and stop criminal activities. Third, improve the quality of personnel, strengthen internal control management and standardize operating procedures. Strengthen business training such as acceptance, audit, credit granting and collection, improve business quality, and shift the focus of risk prevention from mid-term supervision and post-event supervision to pre-prevention. In the case of controllable risks and legal compliance, we will constantly innovate and improve product functions to meet customer needs. Fourth, increase the collection of bad overdraft of bank cards. Crack down on illegal cashing, establish a system model, analyze data characteristics through data mining technology, lock in illegal cashing merchants, cancel their special merchant qualifications, and pursue legal responsibility. At the same time, through the systematic and targeted collection of bad overdrafts, the collection efficiency is improved and the collection cost is reduced. Finally, improve the bank card risk management platform and mechanism. Increase investment in science and technology and improve the system's ability to identify and control risks. Establish and improve the data analysis ability of the whole bank, dynamically analyze customer risks by analyzing customer groups, repayment ability, consumption information and consumption habits, and improve the pertinence and effectiveness of credit line adjustment. Establish the system tracking function of customer groups and high-risk customers to improve the risk early warning ability of bank cards.