Everybody in Australia Will Be Just a Number

Posted on August 8th, 2014 by Dan Rampe

PINwise

PINs Replace Credit Card Signatures in Effort to Crack Down on Fraud Down Under

From August 1, 2014 on, PINs will be the primary form of authorization for cardholders as banks and card companies attempt to slash fraud which has cost Australia some $262 million between 2010 and 2012.

One million not ready

In a piece on smh.com.au (link to article), Kim Arlington quotes Nicole Pedersen-McKinnon, consumer spokesperson for the payment industry’s PINwise campaign, saying, “There are 1 million consumers who are far from ready for this move. [Either they] don’t have PINs or are not yet using their PINs.”

Across Australia, 800,000 merchant payment terminals will upload a software update that makes signatures obsolete.

What happens to people who can’t remember PINs?

Banks will issue signature-preferred cards for people who, for mental or physical reasons, struggle to remember a PIN or use a terminal keypad. The cards have a different built-in verification code which lets customers sign rather than provide a PIN.

Talk about bad advice

Ian Yates, chief executive for the Council on the Ageing Australia, said the Council had reports of bank staff advising elderly people with memory problems to write down their PIN and carry it with them. ‘‘I’m sure that’s not the official bank position … but that’s what some people will do,’’ Yates said. ‘‘The security implications are worrying.’’

And there’s the visually impaired

Greg Madson, president of Blind Citizens Australia, said older members of his organization had never navigated a terminal keypad. “We will be advocating for some sort of uniformity across the design of these [terminals] so that people who are vision impaired … [do] not have to struggle around the keyboard.”

On behalf of Australian retailers

“Retailers just do not look at these signatures,” noted Russell Zimmerman, executive director of the Australian Retailers Association, who knew of one man who regularly signed for credit card purchases as “Mickey Mouse.” Hmmm. Did the guy have big ears, white gloves and a squeaky voice?

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MasterCard, Visa and American Express Call for Hard-to-Counterfeit Credit Cards and Tokens Replacing Account Numbers to Help Plug Breaches

Posted on February 10th, 2014 by Dan Rampe

Breach

“Once more unto the breach, dear friends, once more; Or close the wall up with our English dead!” (Shakespeare, Henry V).

Piling up English dead to stop hackers sounds a mite extreme – especially if you happen to be English. However, MasterCard, Visa and American Express are pushing for new technologies to make it more difficult for cybercriminals to exploit businesses and their customers.

MasterCard CEO Ajay Banga said merchants and payment processors have to work toward chip technology and tokenization to improve security. “We’ve got to get ahead of this as we go forward otherwise you’re going to have [more breaches like Neiman Marcus and Target]. The more often it happens, the worse it feels.”

Chris McWilton, MasterCard’s president of North American markets, wrote merchants reminding them a “liability shift” is in the works. Merchants not upgrading to a safer technology would be responsible for paying for defrauded customers.

One of those technologies, writes Christina Rexrode on marketwatch.com, is the EMV (Europay, MasterCard, Visa) chip, which is “sometimes called ‘chip and PIN’ or ‘chip technology’ [and is] supposed to be harder to copy than cards with only magnetic stripes.”

Visa’s CEO Charlie Scharf says he’s seen “a large number of the big merchants” commit to chip technology and “a number of the banks” already issuing chip cards.

Banga says, “Everyone needs to be on the bandwagon. Banks need to be there, merchants need to be there, governments are clearly there. We need to get the networks there and the acquirers there, and I think there’s a lot of progress on that front.”

Rexrode writes that “in markets where chip technology was installed, MasterCard [reported] it saw a 60% to 80% decrease in counterfeit fraud.” And, while chip technology would not have prevented a data breach like the one Target suffered, MasterCard’s Banga said chip technology would make stolen data, “much, much, much less valuable to a fraudster, because it’s tough to counterfeit the card, and it’s almost impossible to duplicate all the unique data that flows for that transaction to get approved.”

Tokenization is another safeguard that MasterCard, Visa and American Express are urging be adopted. Tokenization lets customers shop online without entering their account numbers which are replaced by other identifiers known as tokens.

ThreatMetrix secures Web transactions against account takeoverpayment fraudidentity spoofing, malware, and data breaches. The ThreatMetrix Global Trust Intelligence Network, which analyzes 500 million monthly transactions, provides context-based authentication and Web fraud prevention to help companies accelerate revenue, reduce costs and eliminate friction. ThreatMetrix protects more than 160 million active user accounts, 2,500 customers and 10,000 websites across a variety of industries, including financial servicesenterprisee-commerce, payments, social networks, government, and insurance. For more information, visit www.threatmetrix.com or call 1-408-200-5755.

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