Fraud is the most commonly experienced crime in the UK and it costs the country billions of pounds every year.
A large chunk of that happens online, where a criminal uses your card details to pay for things on an app or website without your consent.
Sadly, fraud is an everyday occurrence in the world of banking products. When a bank card is used fraudulently, often what’s gone on behind the scenes is that a criminal has stolen the customer’s card details using website spyware or email phishing attacks and then either paid for things directly or sold the details to another criminal on the dark web.
We take fraud very seriously
All companies like Coconut have a responsibility to watch out for suspicious activity, act fast, and keep getting better at protecting customers from fraud. We work with our banking partners, Mastercard, and other fintech companies to develop sophisticated systems and processes to catch it.
Thankfully, at Coconut, it’s rare. We catch a lot before it happens, and our banking partner’s fraud rates are less than half the UK card industry average of 0.124%.
It’s a tough balance to strike. We understand that you want the freedom to run your businesses without unnecessary restrictions, but at the same time, we don’t want you to become a victim.
Our aim is to catch as much as we can before it happens. And when it does happen, we want customers who have been legitimately defrauded to feel confident that we've got your back and that your business won't be impacted.
We're always working to improve our processes around how we handle new fraud cases.
What we’re doing to protect you
We work closely with our banking partners to manage fraud, including Mastercard and PPS (PrePay Solutions), who power many of the UK’s leading banking providers.
Coconut uses 3D Secure, also known as 3DS, a fraud prevention measure that acts as an added layer of security when taking card payments. We will ask you to authenticate yourself via short login (PIN, face ID, or fingerprint) through the app to confirm some of the card payments you make online.
You will be asked to confirm a payment through the app in the following scenarios:
- Any payment over £30.
- Payments under £30 if the cumulative spent since the last authentication is £100 or more.
- Payments under £30 on the 4th transaction since the last authentication.
We have fraud rules threaded through the tech that Coconut runs on, including some clever machine learning pulled in from Mastercard. We regularly update these rules. That’s because our Financial Crime team is always monitoring transactions and reviewing fraud cases to improve our monitoring and prevention measures.
There are spending and transaction limits and triggers on accounts to make sure any impact of fraud is small and caught early.
What you can do to protect yourself from fraud
There are also a few steps you can (and should) take to protect yourself as well.
- As obvious as it sounds, never share your Coconut card details with anyone! Even if the person is trustworthy, the medium you use might not be secure.
- Turn on your payment notifications in the Coconut app so you know what’s happening in real-time.
- If you see a payment you don’t recognise, immediately block your card in the app and contact our support team through the in-app chat.
- If you lose or misplace your card, we also recommend blocking it right away as a precaution.
Any concerns at all, do get in touch with us. We’ll look into the transaction(s) and support you through any claims that are necessary. You’re not alone!