Technology Company Offers New Possible Security Measure To Combat Fraud
Banks lose millions of pounds on an annual basis to credit card fraud.
According to one expert, credit cards need for a new design is long past due.
Prof. Alan Woodward, a Surrey University cyber security expert, said it’s a bit surprising this kind of action hasn’t already been introduced.
The card adds another level of security, getting rid of the printed three-digit security code on the backside of the card, using a mini-screen that shows a random code that automatically changes each hour.
A thin lithium battery will power the device and lasts for three years.
Woodward said the technology has been around for quite some time; it’s just about convincing the credit card processors to go along with the idea. He said it might be a bit expensive for card operators because the additional infrastructure is needed to ensure the cards stay connected with the operator.
The problem for customers is that they cannot memorize their card’s security number, and must check the card each time they want to use it for an Internet purchase.
Both French banks Groupe BPCE and Societe Generale will issue these cards to their customers, after conducting a pilot program to see how it worked.
The UK’s Financial Fraud Action said the UK’s credit card fraud hit £755m for the 2015 year, with more than 20,000 victims.
There are many ways in which fraudsters were able to get the credit card information – usually from online data theft or skimmers that were attached to ATMs. Skimmers, which are homemade devices typically, are put on a cash machine in the attempt to steal a card’s magnetic strip and pin number. It usually uses a web camera or fake ATM pin pad.
The design has gotten more sophisticated thanks to the advent of the shimmers, which can get information from the chip on the card. Scammers will also install malware into ATMs.
To address the issue, banks are coming up with other secure methods to recognize the person using the card – to ensure it is the customer.
Kaspersky Labs, a security firm, said cyber criminals are already developing ways to use the new technologies to their benefit. Underground sellers are offering devices that can get information from iris and palm recognition systems.
David Emm is a Kaspersky principal security researcher, and he said the Motion Code card does decrease the opportunity window for thieves to use the stolen card. He said banks need to apply an array of cyber security solutions to reduce access to the information.
Emm said consumers need to be aware of their digital footprint, use strong passwords and install security updates right away. They also should exercise caution when using a public Wi-Fi network, so as not to reveal too much information about who they are.