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Wednesday, October 15, 2014

ABA Seeks Exemption from Limits on Mobile Data Security Alerts

ABA asked the Federal Communications Commission to remove barriers to the time-sensitive mobile calls and texts banks use to reach their customers when their accounts may be compromised. Class action suits filed under the Telephone Consumer Protection Act currently limit banks’ ability to offer these communications, even though most consumers prefer mobile fraud and security alerts.

ABA President and CEO Frank Keating said:
Effective fraud prevention requires the earliest possible contact with the customer. Automated text and voice message calls to mobile phones can reach people wherever they are, enabling customers and financial institutions to react promptly to stop fraudulent transactions and respond to data security breaches.
ABA requested exemptions for communications that would alert customers to potentially fraudulent transactions, actions needed to complete pending money transfers and actions necessary to respond to data breaches.

Keating added:
With about 40 percent of the nation’s households now ‘wireless only,’ the ability to send these automated notifications to mobile phones is critical. The rules were designed for a time when nearly everyone had a landline. Since that is no longer the case, it is dangerous not to update the standards.
Read ABA’s FCC filing.

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