Visa Tests New Anti-Fraud Card Device, But What About The Data Leaks?

from the finger-in-the-dike dept

Visa is testing a new type of credit card that's got additional security measures built in as a means of cutting down on "card not present" (CNP) fraud -- the fraudulent sales rung up using stolen credit-card numbers and the security codes that are normally printed on the cards. Visa's new cards have a small screen on the back that displays a six-digit code when the cardholder enters a PIN on the card's keypad, making it sound like Visa has basically built in a tiny version of something akin to the SecurID, a popular two-factor authentication device for corporate computer networks. The devices generate an additional one-time password using an algorithm synced with the system on the other end; the user enters this password when they attempt to log on, or in Visa's case, make a CNP transaction. If the passwords match, the transaction goes ahead. It sounds like a good way to cut down on CNP fraud, but is it just a way to try and gloss over the massive data leaks that see millions of credit-card numbers lost out into the world? It almost seems that if these new anti-fraud cards make it to market, the party line will be "the data leaks don't matter anymore" -- but criminals will still be able to obtain credit-card numbers and make fake cards with the stolen info (for card-present fraud). It might make criminals' lives a little more difficult, but it won't make credit-card fraud impossible. Raising the level of security on credit cards is, without question, a good thing. But unless it involves doing more to stop massive data leaks, it's not enough.
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Filed Under: anti-fraud, credit cards, fraud
Companies: visa


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  1. identicon
    John B. Frank, 18 May 2009 @ 2:55pm

    Payment Security

    This Visa card is a good idea, but it's expensive. The most effective way to get rid of Card Not Present fraud is to make the Card Present. In the brick and mortar world the customer goes to the store and swipes their card (and enters their PIN) into a Point of Sale device at the store...hence card present. In the "virtual" world, since the customer can't go to the store to swipe their card and enter their PIN into a POS device, they need to have their own "personal" POS Device. HomeATM designed and currently manufactures the "first and only" PCI 2.0 Certified PIN Entry Device designed exclusively for e Commerce. ($15) Data leaking is also solved as it 3DES Encrypts the data inside the box and the data is NEVER in the clear. It is sent encrypted and is not decrypted until it reaches its destination (which has a unique key to unlock each transaction) With fraud at an all time high, and growing higher still, this is the only way to secure financial transactions on the Internet. To read more about Payments Security, feel free to visit the PIN Payments News Blog at http://PINDebit.blogspot.com

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