Tandem initiates 'Fraud Conversation' to relieve the hassle of blocked transactions

Tandem initiates 'Fraud Conversation' to relieve the hassle of blocked transactions

UK challenger bank Tandem has opened up a new front in the fight against fraud, by starting a two-way in-app conversation with users before blocking suspicious transactions.

While other banks routinely suspend unusual transactions without notifying the customer, or insist on a call back to the fraud department, the Tandem app instead flags potentially suspicious activity via a push notification.

Tandem, CTO, Paul Clark says, “When we talked to our Co-Founders (the bank's user community) about sources of unescessary stress the way overseas fraud checks are handled came up time and time again. We want to make fraud prevention easy for people: we give users a nudge and if they confirm that it’s them conducting the activity they can continue spending hassle-free.”

Spending overseas is one of a number of potentially fraudulent activities that are now flagged by the Tandem App. Various aspects of user activity are measured to identify whether the person using the account in question is who they say they are, drawing user's attention to large payments, new merchants, or unescessary fees.

Says Clark: "While many banks employ these fraud rules, most do not offer a self resolution service, and certainly not a proactive one.”

Comments: (3)

A Finextra member
A Finextra member 24 May, 2018, 09:33Be the first to give this comment the thumbs up 0 likes

Thank goodness for this!  When I went abroad with Tandem in January, they were constantly blocking my card with no communication at all.  I paid more in international phone calls than I made in cashback, despite spending £3000.

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 24 May, 2018, 18:32Be the first to give this comment the thumbs up 0 likes

What kind of transactions is this PUSH notification for? Debit card, Credit card or A2A transfers?

A Finextra member
A Finextra member 25 May, 2018, 00:481 like 1 like

Credit card. Funny how they say other banks routinely block without communication. I have never seen worse behaviour than Tandem on this very issue. Not only that, but they don't even have 24h support. I was in Western US, so had to wait up until midnight each time (8am UK) to speak to them. Great to see them slowly catching up, but laughable to claim a USP!

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