Frates Insurance & Risk Management
By Thomas P Mulligan
Identity theft and fraud is becoming so potentially profitable; it is increasing almost as fast as card use.
Recent Large Data Breaches:
A major research firm, is estimating that Bank Card fraud may hit $3 billion in 2011.
Over 3 Million Americans were victims of Bank Card fraud over the last year.
42% of bank customers have had their identity stolen in the last ten years.
According to Visa, 87% of merchants are not computer compliant with the Anti-Fraud
Card Skimmers are using Restaurants, Pay at the pump gas stations and ATMs.
As more banks have losses they will improve their security systems. They always have and they will again.
However, it is not possible to prevent every security breach or fraud.
Implement new procedures and systems to prevent/mitigate fraud
buy the Bank Card Protector Policy.
The Policy has 3 Insuring Agreements
FRAUD AT AN ELECTRONIC TERMINAL
FRAUD INVOLVING TELEPHONE, MAIL ORDER AND INTERNET
COMPROMISED CARDS EXTRA EXPENSE
1. Lost, stolen or counterfeit card including unauthorized use of card number
2. Fraud on the Internet using Verified by
Visa/Master Secure Code
3. Costs to reissue compromised cards
Verified by Visa
“White Card” or Internet
All of these situations would be covered by the Bank Card Protector Policy. In addition the deductible is a per card deductible of $1,500 vs. most competitors $5,000 or higher.
When a Bank Card has been compromised, the extra expense to reissue a new card is covered. However, the bank must cancel the compromised card upon receipt of notification.
Benefits to Lenders
1. Worldwide Coverage
2. Extra expense to reissue compromised cards is covered
3. Maximum loss per card is $10,000
4. Low deductible- $1,500 per card
5. Skimming Fraud (White Card) covered
6. Insurer is A+ rated
This is a stand alone policy and will not be effected by losses in the Financial Institution Bond.
Limits and Deductibles structured for the Bankcard industry.
An easy to complete Application.
A $1,500 Per Card Deductible Maximum per occurrence deductible $10,000.
Higher deductibles are available for reduced premium.
$10,000 per card limit
$100,000 per occurrence limit
$250,000 Annual Aggregate
Other Limits can be negotiated.