<P> By card issuers: </P> <Ul> <Li> Fraud detection and prevention software that analyzes patterns of normal and unusual behavior as well as individual transactions in order to flag likely fraud . Profiles include such information as IP address . Technologies have existed since the early 1990s to detect potential fraud . One early market entrant was Falcon; other leading software solutions for card fraud include Actimize, SAS, BAE Systems Detica, and IBM . </Li> <Li> Fraud detection and response business processes such as: <Ul> <Li> Contacting the cardholder to request verification </Li> <Li> Placing preventative controls / holds on accounts which may have been victimized </Li> <Li> Blocking card until transactions are verified by cardholder </Li> <Li> Investigating fraudulent activity </Li> </Ul> </Li> <Li> Strong Authentication measures such as: <Ul> <Li> Multi-factor Authentication, verifying that the account is being accessed by the cardholder through requirement of additional information such as account number, PIN, ZIP, challenge questions </Li> <Li> Multi possession - factor authentication, verifying that the account is being accessed by the cardholder through requirement of additional personal devices such as smart watch, smart phone Challenge - response authentication </Li> <Li> Out - of - band Authentication, verifying that the transaction is being done by the cardholder through a "known" or "trusted" communication channel such as text message, phone call, or security token device </Li> </Ul> </Li> <Li> Industry collaboration and information sharing about known fraudsters and emerging threat vectors </Li> </Ul> <Li> Fraud detection and prevention software that analyzes patterns of normal and unusual behavior as well as individual transactions in order to flag likely fraud . Profiles include such information as IP address . Technologies have existed since the early 1990s to detect potential fraud . One early market entrant was Falcon; other leading software solutions for card fraud include Actimize, SAS, BAE Systems Detica, and IBM . </Li> <Li> Fraud detection and response business processes such as: <Ul> <Li> Contacting the cardholder to request verification </Li> <Li> Placing preventative controls / holds on accounts which may have been victimized </Li> <Li> Blocking card until transactions are verified by cardholder </Li> <Li> Investigating fraudulent activity </Li> </Ul> </Li>

Who pays when a credit card is used fraudulently