Credit Card Made More Secure: Emue Card

Business transactions via internet are now common, so it is crucial that innovations in technology are designed to address problems associated with credit card fraud online.

Credit card fraud on increase

According to a report by the Association for Payment Clearing Services (APACS), credit card fraud in 2008 was more than Ј328.4 million, an increase by 13% from 2007.

One recent example where consumers’ credit card details were stolen was in the wake of the swine flu. There are reports of email messages being sent round selling vaccines believed to cure the flu. Most of these emails were actually attempts to steal credit card information from consumers.

The Emue credit card technology to the rescue

The Emue card is battery-powered and has an in-built microchip mechanism that displays a unique code each time it is used. Each transaction requires a PIN to generate the code.

Most credit card transactions require a 16-digit and 3-digit code (usually on the front of the card) and an expiry date. If a consumers credit card details are stolen, all of these details become available to any person who gets the card.

The new Emue system is better than a traditional credit card because it includes an additional level of security. Apart from the 16 and 3-digit security code, an additional 4-digit code - generated by the card - would now be required before a transaction could go through.

When a user enters a PIN into the card the display shows a one-time number with which to authenticate each online credit card transaction. Even if all of these details are stolen, the hacker would be unable to make an online transaction because the security code is different each time. The card thus combines both chip and pin technology. This technology gives banks some amount of control as the unique code as well as the PIN the user chooses is stored with the bank.

When the new technology will be in place

The card is currently on trial by 500 employees of Deloitte. The field trials could be completed by the close of 2009. EMUE Technologies is hopeful that if the card is licensed by Visa, banks and credit card companies like MBNA would welcome the technology. The card is indeed a consumer focused product and could be on the list of any bank’s commercial products.

David Swan
david.u.swan@gmail.com
http://www.thinkingmoney.org