In a bid to combat credit card fraud, Visa are trialling the world’s first credit card with embedded micro-processor, 12 button keypad, 8-digit alphanumeric display and long life battery.
The new credit card requires users to enter their PIN in order to receive a unique pass code that is only valid for a single transaction. It is hoped that the system would make ‘card not present’ fraud almost impossible and even limit the opportunities for ‘card holder present’ fraud since the code cannot be obtained unless the correct PIN is entered.
Card fraud losses in Britain in 2008 totalled £609.9 million, according to lenders’ trade body APACS, and £328.4 million of this figure was as a result of ‘card not present’ transactions such as phone and internet shopping, and mail order fraud. Speaking to the BBC, Michelle Whiteman, a spokesperson for APACS, explained why current credit card security measures are unsatisfactory in guarding against ‘card not present’ fraud:
“Firstly, you aren’t able to check the card’s physical security measures, such as the hologram or signature. Then, at present, there is no form of chip and pin security. And finally, because of the anonymous nature of internet transactions, there fraudsters have a much lower chance of getting caught, which probably encourages some people who might otherwise not commit a crime.”
Developed in conjunction with EMUE Technologies Pty Ltd, the Visa PIN Card is thin enough to work in ordinary cash machines and payment terminals, and has a built-in battery designed to last for at least three years. The card is now being trialled by 500 Deloitte employees and the success of the technology will be assessed at the end of the year.
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