Bank of New Zealand addresses the issue of counterfeit cards

At 150 years old, the Bank of New Zealand has learned a thing or two about keeping its customers happy. Age has not withered it: instead it remains a lively source of innovation, and retains its commitment to ensuring that its 5,000 staff continue to provide exemplary service to its one million-plus customers.

Counterfeit fraud – The post-holiday blues

The underlying customer expectation is the security of their data and their transactions. But like all banks, BNZ has to deal with the realities of modern fraud activity. Fortunately New Zealand has escaped the attentions of some of the more dedicated global criminal gangs, and the rate of fraud remains comparatively low compared to other advanced economies. But the country does have a real problem when it comes to counterfeit fraud. 

Locking the back door

Pulling together members of the bank’s fraud team, Turner and his colleagues came up with a solution they called Liquid Encryption Number or LEN that changes the last three numbers on the magnetic stripe each time a card is used in one of the bank’s ATMs. When integrated into the ACI Fraud Management for Banking fraud management solution, the bank’s fraud analysts could identify the initial point of compromise and then identify all other affected customers without automatically blocking and reissuing cards.

A global success

Since introducing liquid encryption numbers, BNZ has seen up to a 75 percent drop in counterfeit card fraud. In conjunction with ACI Fraud Management for Banking, it has allowed the bank to offer its customers the highest levels of protection without inconveniencing them in any way.