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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
    Freedom, 14 May 2009 @ 11:54pm

    Good start...

    Sure, data leaks need attention too, but this security measure is a welcome change. Besides, even if you do everything at a corporate level to secure the information in a CIA type fashion, it will still leak via infected PCs, etc. and no system is perfect at protecting data loss.

    As they say, go for the lay hanging fruit and even if the card data is compromised this could potentially stop it from having any real world affect.

    Add to this an enhanced card reader that will automatically download the code at a store when presented in person and you just made duplicating the card incredibly difficult.

    Sounds to me like they've taking the system that DirecTV uses for their Access Cards and put it into a credit card. Hope no one is watching/reading this, sounds like time for a patent lawsuit or time for DirecTV to get a really good transaction rate on their merchant account.

    Freedom

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