New Digital Cards To Help Banks Combat Online Fraud




/ 3 years ago

banks

Banks in the UK could soon be rolling out a new type of card, which would majorly reduce cases of online fraud. This new type of card would see the 3 digit security number on the reverse of the card replaced by a randomly generated number which changes every 20 minutes.

This new technology is being developed by Gemalto. The system is called Dynamic Code Verification (DCV), and it certainly looks promising.

The card will contain a battery along with a microchip, and it will be interesting to see if these components can be squeezed into a bank card, or if ATM’s would need to be adapted.

The feature is also being brought to mobile in the form of an app. Both methods will obviously require the card or phone to be physically present, however, this does make it slightly less convenient if either or these were lost or stolen.

At present, most people either remember their 3 digit security number, or have their details saved to the website, these methods would be rendered useless in the case of a lost or stolen card, and that quick purchase you wanted to make, would be put on hold.

Online fraud is a common problem, and is on the rise as noted in this years FFA report. Senior fraud prevention officer at the Dedicated Card and Payment Crime Unit, Tony Blake, works closely with the FFA and he said;

“It is a huge growth area and criminals are always looking at new ways to make money as more of us go online to do our shopping. The dynamically changing digital security number on the back of the card is one of the things in development which looks quite promising.”

Have you ever been a victim of online fraud? Do you think this technology is needed? How long would it be before fraudsters found a way around the system?

 


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