New credit card with key pad will fight Internet fraud
The future for credit card fraudsters might now be numbered. PIN numbered that is. A new credit card the same size and shape as a regular card has been developed with its own small LCD display and keypad to protect card holders from credit card thieves.
New credit card with key pad will fight Internet fraud
A would-be fraudster would need to have the physical card with them and know the owner’s PIN to make any purchase at all.”
Visa have issued a statement saying that the new card could significantly reduce online shopping fraud and cause the most common type of identity theft, card-not-present fraud to become practically impossible.
The proto-type will be tested early in 2009 by MBNA and expectations are high.
Innovative protection against fraudsters
The new cards don’t appear all that different at first glance, they’re no thicker or wider than an ordinary plastic credit card but they have a little 12 button key-pad built-in beneath the signature strip and a small LCD display. This display has batteries that can last up to 3 years.
The card was developed with the help of a company called EMUE Technologies and has already been launched abroad. Other countries to start piloting the scheme next year include Switzerland, Israel and Italy.
How does it work?
The customer goes to the checkout section of the store they’re using to shop online. During the check out process they’re asked for a special code. The customer then enters their PIN on the card’s integrated keypad.
The digital display shows up to eight digits and using internal technology the card generates a safe, unique code which is shown to the card holder on this display. They enter the code on the web store checkout page and if the code is correct then the purchase goes through.
This means that for a fraudster to take advantage of the new card they would need the physical card with them and to know the owner’s PIN. It is hoped this will put an end to card-not-present crime.
Other benefits
Some of the new cards also have the added benefit of preventing telephone based fishing. Telephone based fishing is a way which fraudsters learn about their victims, they call you pretending to be your bank and ask you for some information to ‘put you through security’.
They then log that information and use it to access your real account because they then know all the answers to your security questions. The new cards have a facility for you to generate a code and you can then ask a telephone banking assistant to verify this code thus proving that they are really who they say they are.
Sandra Alzetta, spokeswoman for Visa said: “We saw a big rise in online shopping, but consumers were still worried about fraud. We hope this new card will help allay those fears, and give consumers more confidence when shopping online.”
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