Broadcom adds a second check to stop card scams you approve yourself

Broadcom has launched a tool that lets banks stop an online card payment even after you approved it with a code. It is called Arcot Scam Defense. It aims at scams where a fraudster talks you into authorizing the payment yourself.

What changed

Today, when you shop online, your bank may ask for a one-time code or a fingerprint or face scan. This step is called 3-D Secure. Once you pass it, the payment is normally treated as real. Broadcom says the bank's usual risk checks are not built to stop a real account holder who is being steered by a scammer. The new feature adds a second check right at that moment.

What it looks for

The system weighs several signs together instead of relying on one. Broadcom lists these examples:

• Differences in location and behavior between the checkout device and the device that approves
• A one-time code entered late
• Use of a different way to verify than usual
• A large physical distance between the two devices

It can also connect to outside tools that tell whether the approving phone is on an active call. Broadcom calls that a key sign of a scam, since fraudsters often coach victims by phone.

The numbers

Broadcom says nearly $500 million in fraud was reported over the past 12 months on payments that passed the code check. In a pilot at one card issuer, using a full month of live data, reviewing only the riskiest 1% of passed checks would have protected an estimated $4 million that month. The cost was 0.38 points off the issuer's authentication success rate. In plain terms, slightly fewer checks would have gone through smoothly.

What it means for you

If your bank uses a tool like this, a scam payment you approved might get blocked. That could save you money. The trade-off is that a real purchase might occasionally be held up, especially if you are traveling, on a call or using a different device.

What is not known yet

The material does not say which banks will use the feature, when it will reach customers, or what it costs. Broadcom plans to add more signals about cardholders and devices. It also plans a tool that learns each cardholder's past habits when verifying a payment.