Comments on: Smart Card will “Totally Eliminate Identity Theft” http://www.merchant911.org/blog/index.php/2009/11/12/smart-card-will-totally-eliminate-identity-theft/ Comments on credit card fraud from the E-Commerce Merchant point of view by Tom Mahoney, Founder and Director of Merchant911.org Fri, 13 Jan 2012 06:40:43 +0000 hourly 1 http://wordpress.org/?v= By: Henning L. Ostergaard http://www.merchant911.org/blog/index.php/2009/11/12/smart-card-will-totally-eliminate-identity-theft/comment-page-1/#comment-2310 Henning L. Ostergaard Sat, 21 Nov 2009 15:45:21 +0000 http://www.merchant911.org/blog/?p=432#comment-2310 On board powered cards with fingerprint scanner and dynamic magnetic stripes are available today... The CardLab Biometric Credit Card will only "turn on" the dynamic magnetic stripe, when the card owner has authorized the card by swiping his/hers finger on the on board powered scanner. I.e. no power from an external scanner (such as an ATM) is needed. The onboard display can, after authorization, show an on board generated One Time Password, e.g. a dynamic CVV code, and will thereby eliminate most online fraud Copied credit cards will simply not work, since the CVV code is a One Time Code, and not printed on the card or stored on the magnetic stripe as it is today... On board powered cards with fingerprint scanner and dynamic magnetic stripes are available today…

The CardLab Biometric Credit Card will only “turn on” the dynamic magnetic stripe, when the card owner has authorized the card by swiping his/hers finger on the on board powered scanner. I.e. no power from an external scanner (such as an ATM) is needed.

The onboard display can, after authorization, show an on board generated One Time Password, e.g. a dynamic CVV code, and will thereby eliminate most online fraud

Copied credit cards will simply not work, since the CVV code is a One Time Code, and not printed on the card or stored on the magnetic stripe as it is today…

]]> By: Wynand Vermeulen http://www.merchant911.org/blog/index.php/2009/11/12/smart-card-will-totally-eliminate-identity-theft/comment-page-1/#comment-2308 Wynand Vermeulen Mon, 16 Nov 2009 08:42:00 +0000 http://www.merchant911.org/blog/?p=432#comment-2308 Biometrics certainly have potential, but will not do much towards improving card fraud. The number one reason for card fraud is the acceptance of transaction based solely on the information printed on the card (also known as manual transactions), or data on the magnetic stripe. Visa and MasterCard both offer additional security for internet transactions by using 3D secure. 3DSecure navigates from the merchants page to a payment page on the issuing bank, and then back to the merchant. 3DSecure can be used with a variety of cardholder authentication methods, such a passcode, or using EMV cards for CAP/DPA (Chip Authentication Program, Dynamic Passcode Authentication) transactions (also known as Verified by Visa or MasterCard SecureCode). Biometrics can easily be added to EMV cards for use with CAP/DPA, there are cards that include a display on the card, which can display a number on presenting a valid fingerprint, however I don't see how these cards would work at an ATM, since they need to be powered in order to capture a fingerprint, and ATMs typically capture the card before powering it... Biometrics certainly have potential, but will not do much towards improving card fraud. The number one reason for card fraud is the acceptance of transaction based solely on the information printed on the card (also known as manual transactions), or data on the magnetic stripe.

Visa and MasterCard both offer additional security for internet transactions by using 3D secure. 3DSecure navigates from the merchants page to a payment page on the issuing bank, and then back to the merchant. 3DSecure can be used with a variety of cardholder authentication methods, such a passcode, or using EMV cards for CAP/DPA (Chip Authentication Program, Dynamic Passcode Authentication) transactions (also known as Verified by Visa or MasterCard SecureCode).

Biometrics can easily be added to EMV cards for use with CAP/DPA, there are cards that include a display on the card, which can display a number on presenting a valid fingerprint, however I don’t see how these cards would work at an ATM, since they need to be powered in order to capture a fingerprint, and ATMs typically capture the card before powering it…

]]>