Credit Card Fraud, Company Policies - Prevention and Prosecution?

It seems credit card companies could take more preventative measures in reducing fraudulent use of cards. Additionally, they take little to no action if a card is reported lost or stolen and cooperation with law enforcement is comical. Is there a business or financial reason for this, and if so, why? Some ideas would be to issue a PIN like a debit card (which could be verbal for phone orders) and requiring the use of a government ID when making charges in person. I also question why they don’t assist law enforcement with reported cases, especially when a suspect or viable leads are developed? I’ve been involved in cases where companies refuse to provide information to the victim/card holder and even withhold information from law enforcement departments. They simply release the payment obligation of the card holder, write it off, and hope the matter dissolves. We, as consumers, pay higher interest rates and service fees for this. Does anyone know why the companies don’t increase prevention and allow for better prosecution?

Credit Card Fraud, Company Policies - Prevention and Prosecution?
most banks do employ software to identify significant fraud threats (ie waaaay out of area purchases, purchases outside normal purchasing patterns and the like). it's the ones that look like normal purchases and patterns that are missed by the software.





As to chasing, identifying and prosecuting the bad guys:





there are several issues:


1) identifying the bad guys - unless the card is flagged and the used in a place where the bad guy can be apprehended, it is almost impossible to find and arrest them after the fact.





2) location - if the bank is in NY and the crime takes place in California, it is tough to file a criminal complaint and then, if they do make an arrest, appear in court as a witness without incurring significant expenses.





3) size - the feds (Secret Service mainly) are only interested in large dollar crimes. someone swiping a card and buying 30 gallons of gas and a carton of cigarettes before the card is frozen is not exactly a priority for the feds.





Most banks are willing to accept a certain amount of loss via credit card fraud and are insured for losses above a certain amount as long as they show due diligence on identifying, limiting and preventing credit card fraud.





In addition, banks make a ton of money on credit cards (average interest rate is 15% and monthly balance is $2000ish) and so far the losses have not be sufficient to make them aggressively identify, limit and chase fraudsters. When they do incur those level of losses, things will change rather dramatically (and I doubt that we will like it)