Re: Old school ?
"Why does it seem to me the goal is 0% fraud ? When did that suddenly become the aim ?"
Because it's being demanded by the customers due to all the hype about card detail theft, and they won't settle for anything less.
"Back in the pre-internet days (yes, there really was such a time), it was more credit than debit card fraud (since we used to use cheques*) banks tolerated a certain amount of fraud, for a certain amount of money spent on security. I suspect it's still the same.
So rather than thrashing around for the "perfect" security (i.e.0% fraud), people should be thinking what can give me 1% fraud, for a reasonable (i.e. no damaging my profits too much) amount ?"
I suspect their margins are shrinking, lowering their tolerance levels. That and the investors are likely complaining about bleeding money.
"Does it really matter if the odd £10 dodgy transaction gets passed, as long as you catch the unusual £5000 a stolen/cloned card would be used for ?"
That was before fraudsters learned how to get around this by simply using quantity over quality. One £10 scam is tolerable but try a million of them. Savvy scammers have learned how to "smurf," or suck a card just enough to prevent it being flagged and then letting it sit. They're also tying geographic information to cards so thieves can perform transactions in the boob's hometown, making it harder to detect. In such an environment, the inch becomes the mile, drawing the fight into an all or nothing conflict.