New credit card to fight fraud
(17 November 2008 – Australia) An Australian tech firm has created a battery powered credit card that may stop up to $1 billion in credit card fraud.
The credit card is not just any usual credit card. The card carries an alphanumeric display panel and keypad, as well as an inbuilt microprocessor and a three year battery life.
Using the display panel and keypad, customers will have the ability to enter in a pin to obtain a unique authentication code for every online transaction made.
The one time authentication code is intended to replace the three digit code current found on the back of credit cards.
Having a one time code reduces fraud associated with stolen credit cards being used online, customer data from merchants and computer viruses recording keystrokes including the current three digit pin.
Each card costs about five times more than current credit cards to produce and will be sold to bank customers during overseas trials for between US$18 and US$30 each.
The technology was developed over two and a half years by a small Deloitte-backed technology firm called EMUE Technologies based in Adelaide and Melbourne.
EMUE's chief executive officer, Brendan McKeegan, said that trials would begin with an Australian bank in the first quarter of 2009.
This week Visa announced it was piloting EMUE's technology at one bank each in Britain, Israel, Switzerland and Italy. The bank in Britain is Bank of America.
Sandra Alzetta, head of innovation and new products at Visa Europe, said that the interest in this solution in the industry has been overwhelming and Visa looks forward to working with the banks involved in the pilots to gain greater insights into how effective this solution can be in the longer term.
Using the display panel and keypad, customers will have the ability to enter in a pin to obtain a unique authentication code for every online transaction made.
The one time authentication code is intended to replace the three digit code current found on the back of credit cards.
Having a one time code reduces fraud associated with stolen credit cards being used online, customer data from merchants and computer viruses recording keystrokes including the current three digit pin.
Each card costs about five times more than current credit cards to produce and will be sold to bank customers during overseas trials for between US$18 and US$30 each.
The technology was developed over two and a half years by a small Deloitte-backed technology firm called EMUE Technologies based in Adelaide and Melbourne.
EMUE's chief executive officer, Brendan McKeegan, said that trials would begin with an Australian bank in the first quarter of 2009.
This week Visa announced it was piloting EMUE's technology at one bank each in Britain, Israel, Switzerland and Italy. The bank in Britain is Bank of America.
Sandra Alzetta, head of innovation and new products at Visa Europe, said that the interest in this solution in the industry has been overwhelming and Visa looks forward to working with the banks involved in the pilots to gain greater insights into how effective this solution can be in the longer term.
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