SecureCard targets credit card fraudsters

By Clement James on Nov 23, 2006 9:54 AM
Filed under Security

Two-factor merchant transaction verification system touted as the answer.

SecureCard Technologies has begun touting two-factor merchant transaction verification technology in an effort to tackle credit card fraud levels in the US which are estimated to have reached over US$3 billion in 2006 so far.

Florida-based SecureCard claims that standard credit card payment systems lack the necessary means to prevent fraud committed through stolen information copied from retailers, both online and offline.

Compromised company databases are also a source of customer data exposure as a result of hacker attacks or dishonest employees.

SecureCard uses an additional layer of security that displays a random authentication number on the chip-embedded credit card powered by a new battery technology and an organic light-emitting diode screen.

The dynamic authentication code assigned to a particular transaction and customer changes every 60 seconds.

Synchronised with a secure authentication server, the authentication number is verified for validity using a time-based algorithm before the transaction is approved.

Additional security is provided by a secret Pin known only to the cardholder for recurring transactions from trusted merchants.

This technology prevents a purchase made with only the credit card information and not the physical card. The one-time transaction code technology completely prevents online and offline credit card fraud, the company claims.

"It is unbelievable the ease in which hackers and other criminals can obtain stolen credit cards or stolen information and use it for their own personal gain," said Adam Boalt, founder of SecureCard.

"Fraud protection and prevention in the credit card industry is obsolete and it is time for a change."