Location Labs Powers Location-based Fraud Detection
The service built with FinSpehere, a fraud detection company, is called PinPoint comes in several flavors (below), but all do the same thing. When the registered credit card is run for a transaction, the app pings the associated cell phone to see if it’s nearby. That would mean the person (as represented by the phone) is near the car. If the two are not “close,” the service notifies the individual.
Free: one cell phone with one credit card
Advanced ($7/month): for unlimited cards and three phones
Complete (price not announced): Advanced plan plus daily credit file monitoring (not yet available)
How does it work? Using location, but other tools are used to find fraud, so PinPoint also works when the phone is off, according the website FAQ. In particular, “We use other data like merchant type and purchase history to better detect fraud and help reduce false alerts.” Also noteworthy, once the questionable transaction is found, you pretty much have to do the reporting. “Within the message we will lay out the details of the incident and provide your bank’s customer service or fraud prevention phone number as well as give you a link to the fraud prevention tips section of our website.”
Also interesting: You must have Internet banking. I’m not really sure why. Since the transactions are tracked by PinPoint after they are reported by the bank, PinPoint may not know about a transaction until two days after it was made. Only then can it compare your stored location and determine if it was a risky situation. That lag may mean you may be well outside the two day window during which reported fraud charges are only charged $50.
It’s interesting this was announced this week, just after LOC-AID, a Location Labs competitor announced its ability to locate phones on many carriers. I wrote about that last week in Directions Magazine.