This Week In Credit Card News: 65% Of Fraud Takes Place On Mobile; Are Debit Card Rewards Returning?

Citi Flirts With Reviving Debit Card Rewards at New Online Bank

Debit card rewards programs, which had all but disappeared at the biggest U.S. banks, might be making a comeback. Citigroup is considering the idea, as well as other types of rewards for checking and savings accounts, to entice customers to sign up for its fledgling online bank, which it began to roll out nationwide earlier this year. Citigroup will work with retailers it already partners with—such as American Airlines—to tailor rewards to existing credit card customers, encouraging them to open new accounts. [Bloomberg]

Nearly two-thirds of all fraudulent transactions take place on mobile devices (Shutterstock)

65% of Fraud Transactions Happen on Mobile

Fraudsters are ditching their desktops to do their dirty work, according to new research by security solutions company RSA. The subsidiary of Dell found that between January and March 31, 2018, 65% of fraudulent transactions took place using a mobile browser or mobile app. In the first quarter of 2015, that number was just 39%. Phishing accounted for 48% of all cyberattacks in the first quarter of 2018. Financial Trojan horse malware accounted for one out of every four fraud attacks during that time. [Credit Union Times]

Half of Americans are Confused about Credit Card Rewards

Roughly half of everyone using credit cards with rewards is more than a little murky on the fine print. The survey reported that 54% of people find their frequent flier programs confusing, while 47% say “ditto” about their hotel loyalty programs. 45% admit they’re basically in the dark about it all. It’s ironic that so many people are confused about their rewards because 67% say rewards are the reason they got the card in the first place. [CU Insight]

How Your Store Card Is Competing To Be Your Everyday Card

Typically, store credit cards could be used at only one merchant. But today, such cards are often widely accepted, richly rewarding and auditioning for a lead role in your wallet. Over 70% of the sales made on the Costco Anywhere Visa® Card by Citi occurred outside of Costco warehouses. Launched in 2016, the card is “open loop” which means you can use it wherever credit cards are accepted. It also offers bonus categories for not just Costco, but also travel, restaurant and gas purchases. Other merchant cards, including those from Amazon, Starbucks, PayPal, Uber and Ikea, are also encouraging consumers to use them for purchases beyond their brand. [Forbes]

Massive Network Crash Temporarily Renders Visa Cards Useless in UK and Europe

Last Friday, Europe and the UK got a really good reminder that cash is still king after a network crash prevented millions of Visa credit and debit card holders from making any transactions.  Things got even worse when some MasterCard and American Express cards started getting declined after transactions were rerouted through Visa’s IT network. This issue has created a headache for a lot of Europeans who found that when trying to buy tickets for a train or bus ride home after work, the credit cards in the wallets had suddenly reverted to being useless pieces of plastic. [Gizmodo]

Wells Fargo is Selling All its Branches in Three Midwestern States

Wells Fargo is retreating from the Midwest. The bank, scrambling to cut costs and dealing with a wave of scandals, announced plans to sell all of its branches in Indiana, Michigan and Ohio. Wells Fargo will no longer have a retail presence in those states. Flagstar Bancorp, a savings and loan, is buying the branches—52 in all, including four of Wells Fargo’s locations in Wisconsin. All told, about $2.3 billion in deposits will leave Wells Fargo. The company said all 490 employees will get offers to work at Flagstar. [CNN]

Ticketfly Data Breach Exposes 26 Million Customers’ Information

Popular ticketing website, Ticketfly, shut down its site following a “cyber incident.” The data breach, which exposed names, addresses, emails, and phone numbers may have affected more than 26 million customers. The hacker responsible for the attack has leaked the personal information of Ticketfly users onto a public server. The firm’s parent company, Eventbrite confirmed that information was stolen, but did not disclose the number of customers affected. [Fortune]

CFPB to Resume Private Consumer Data Collection

The interim head of the Consumer Financial Protection Bureau announced he would lift the freeze on the bureau’s collection of private consumer data, which helps its examiners oversee financial institutions. “Out of an abundance of caution and a desire to protect Americans’ privacy, I placed a hold on the collection of personally identifiable information and other sensitive data,” Mick Mulvaney said. “We can lift that hold.” [The Wall Street Journal]

Mastercard is Looking to Integrate its Payment Tech into Google and Amazon Voice Assistants

Mastercard is looking at ways to integrate its payments system into voice assistants made by Google and Amazon to let people pay by talking to a device. The company has a product called Masterpass that allows a user to upload credit card details and acts as an easy way to pay for things online. Recently, the company launched a facility for people to pay with Masterpass for products within Facebook Messenger. A user would interact with a brand by messaging them on Messenger. When they buy a product, Masterpass can be used to pay. It’s a trend Mastercard is calling “conversational commerce” and it extends to voice too. [CNBC]

Acorns Receives 10,000 Pre-Orders for its Newly Launched Payments Card and Debit Account

Acorns, the financial management service for micro-investments, is adding a rewards debit card to its arsenal of tools aimed at getting Americans to create balanced stock portfolios for economic health. The company has already racked up 10,000 pre-orders for its new payment card that offers perks like investments into Acorns accounts when users purchase with the card at certain online and brick and mortar retailers. The debit card comes with Acorns micro-investment and its retirement account built into the cards services. [Tech Crunch]

[“Source-forbes”]