Location-based tracking to cut down bank card frauds.

Banks and card networks like Visa Inc. and MasterCard Inc. are working with wireless carriers to cut down on counterfeit transactions by tying purchases to the location of a customer’s smartphone.In the next few months, AT&T Inc. will test a service that verifies transactions by using a phone’s whereabouts. as long as it has customers’ permission.since people who are out shopping normally carry their phones with them,AT&T suppose that this will be more effective.
Global card fraud cost $12.4 billion last year, according to David Robertson, publisher of the Nilson Report, a payments-industry newsletter.
 AT&T would use its network data to find a participating customer’s phone, detecting a change in location. For example, the company would be able to confirm that a customer has flown from New York to Paris as soon as she turns on her phone upon landing. AT&T would convey this information to her credit-card lender so that if a transaction is attempted at a store in New York, it would be declined.
In addition to preventing fraud, a phone-location system could also help get rid of false positives -- transactions that are denied because the customer wasn’t in her customary location and forgot to report her travel plans to the bank. 
sources:
http://www.businessweek.com/news/2014-06-26/how-at-and-t-could-keep-crooks-from-using-your-credit-card