MasterCard is developing a SMS fraud alert system using cell phones to clear up card-usage questions. In partnership with mBlox, a mobile messaging infrastructure provider, registered customers will receive text messages should a high-risk transaction be detected, and can then either approve or block the transaction.

"It is an add-on module that will work as a turnkey or plug-and-play solution to easily give banks the ability to reach more customers rapidly and reliably at a lower cost," says Johan Gerber, associate vice president of MasterCard's risk products division. "Instead of every bank trying to do this on their own, this SMS option is ready to use and can be installed in about an hour."

Already in use in parts of Eastern Europe and Sound Africa, MasterCard plans to roll out the service worldwide; spending the past 12 months developing and testing the SMS service. MasterCard is advising banks to offer the service on an opt-in basis; requiring a registration process.