New Tech to tackle fraud
(31 March 2008 – Australia) While figures have recently been released indicating credit card fraud is on the up, new technology is set to tackle the issue.
The Australian Payments Clearing Association recently released data over the past year indicating that 16.7 out of every 100,000 credit card transactions last year were fraudulent, up from 14.8 per 100,000 the previous year.
However, the magnetic strip based system currently being used in Australia is on the way out globally.
It has been replaced across Europe and the UK by EMV chip technology, which combines a ‘chip and PIN’. Adoption of this technology has led to lower rates of credit card fraud in these areas.
EMV was formed in 1999 by Europay International, MasterCard International and Visa International. It outlines interaction between chip cards and terminals to ensure global interoperability.
The fact that the information is stored on an internal chip rather than the magnetic strip makes it more secure from fraud. The chip contains a key that is shared between the chip and the customer’s bank only, so making a copy of the card is useless.
Today, chip cards are used in 45 countries, according Australian Payments Clearing Association.
However, the magnetic strip based system currently being used in Australia is on the way out globally.
It has been replaced across Europe and the UK by EMV chip technology, which combines a ‘chip and PIN’. Adoption of this technology has led to lower rates of credit card fraud in these areas.
EMV was formed in 1999 by Europay International, MasterCard International and Visa International. It outlines interaction between chip cards and terminals to ensure global interoperability.
The fact that the information is stored on an internal chip rather than the magnetic strip makes it more secure from fraud. The chip contains a key that is shared between the chip and the customer’s bank only, so making a copy of the card is useless.
Today, chip cards are used in 45 countries, according Australian Payments Clearing Association.
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