Handling fraudulent transactions

[RevK (Adrian)]

A few of serious suggestions regarding fraud handling.

1. Handling of Fraud. I have had a long argument with Barclays on this,
   insisting that I have to wait for transaction to appear on statement not just
   as authorised, and so on. What I would like to see is a simple way to report
   fraud to Mondo (using the chat system is fine) but the result should be that
   the transaction, from authorisation to submission, should be diverted away from
   my card. Monzo should handle it all behind the scenes, only needing to contact
   me if there is evidence that it was my transaction which I have to refute or
   accept. A one-stop-shop where the fraudulant transaction “goes away” from my
   point of view, regardless of what Monzo have to do to actually dispute with
   merchant, etc. Obviously, depending on type of transaction, this could also
   mean cancelling a card and issuing a new one as part of the process.

2. Confirmation via API. I appreciate that Monzo have a small time window in
   which to accept or decline a card normally. I would really like to see that
   exposed on the API - some way you can contact my system and ask it to
   accept/decline, with some pre-set action (maybe accept below certain amount) if
   I cannot reply in time.

3. On-line purchase confirmation. I know Visa have “verified by visa” and
   Mastercard have something similar. I am really pleased that Monzo skip that
   crap to be honest. However, it makes sense to expose that via the API. The good
   news there is the time limits almost go away. You could ask the API to provide
   a web interface and confirm/reject as a result.

4. Maybe the point above is too hard, or API users may find it too hard to code
   and comply with card processing standards, but you could certainly make the
   verified web interface pop up saying “confirm on your phone app” and wait for
   me to confirm on the phone app with fingerprint, and then complete the online
   transaction. That would work really well and make on-line transaction fraud
   basically impossible. Needs to be an option, and maybe set for txns over a
   certain amount.

[jsmith300]

A constraint that will play into many things is that Monzo uses MasterCard payment scheme and there are lots of rules and processes driven by MC that have to be followed. Others will know more specifics about your points so will let the experts talk!

[anon44204028]

FYI MasterCard’s equivalent to Verified By Visa is Mastercard SecureCode.

Irronically while you don’t like it in some other banks forums people are asking for it in preference to in-house verification methods!

[beningreenjam (Ben Green)]

This is similar to

Security - needs some serious thought

The only slight concern I have over security is how blissfully easy it is to pay a large amount of money to a new merchant at a time that I don’t usually make any payments. Although Monzo isn’t the only card provider that’s guilty of this. Last week I paid several hundred pounds for a hotel using a different currency after midnight to an online merchant I’ve never spent any money with before using that account. That was on Barclaycard not Monzo btw. Some banks such as HSBC have intelligent beh…

Apparently much of these protections are already in place, working quietly behind the scenes so there’s no need to worry.

I remember seeing elsewhere in the forum that an account holder had a fraudulent transaction sorted out for them while they slept.

Your last point which is regarding 3D Secure payment authentication does make sense to me. It’d be a modern and user friendly approach to an already existing standard.