Could keypad credit card cut online fraud?
January 2, 2009
Online fraud is a problem that makes most of us nervous, particularly given the fact that so many of us now use our credit cards to make purchases online. However, with fraudsters using increasingly sophisticated methods to commit fraud shopping online can be nerve racking for some people.
However, according to a recent report one type of credit card is to be trialled that could help to decrease the levels of credit card fraud that are committed. The credit card is to be launched by Visa, and officials from the financial giant have said that it will be trialled in the UK next year so that its effectiveness can be tested.
The credit card will have its own keypad and LCD display, and the idea is that when the consumer makes a purchase online they key their PIN into the credit card keypad, and a special code will come up on the LCD display. This code will then have to be put in on the site for the purchase to be completed.
A Visa official 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.’
Written by Peter · Filed Under News Credit Cards
This sounds like a brilliant idea, however it is no different to the 2-factor token issuing a one-time password to authenticate the user is actually holding the card. Unfortunately we are seeing more and more occurances where the criminals have moved beyond this technology hurdle. In many cases all the criminal has to do is compromise the computer being used by the credit card holder with one of the more sophisticated real-time trojans i.e. Mebroot, sinowal,etc.
I would like to see this work, but if we are to be serious we need to also be aware online criminals will always target the weak point in the security chain……the computer and its user.
There needs to be an extra layer to cover the security weakpoints at the customer end….even if they have all the recommended solutions like AV and a frewall….as is most cases most users are unaware of the security state of their computer.
Therefore I believe online businesses/e-commerce providers, financial institutions and governments need to provide the capability for the computer users accessing their online service to secure their computer (or a computer they are using evenwhen traveling) at the point of transacting online and for the period of the transaction.
This must be done immediately if we are goig to close the gaps in the security chain and be far dinkum!
I think the Online fraud is a problem but not very big issues now it is not more than 0.02% of total online shopping…
Solve this problem will lead to more Complexity of online trading and will make online buyer nervous of long operation to finish his bill checkout for only to buy something may cost 10$ or less.
One major success reason for shopping online is the simplicity … More Complexity will Lead to reduce of using online store.
And even we do what we can do to prevent that later fraudster will find a way.
This what I think..