New credit card anti-fraud scheme launched

Credit-card company Visa is to trial a new scheme to keep British cards safe online.

The Token Based Authentication scheme will provide testers with a small plastic device with issued cards. When an individual needs to make a payment online, they will be asked to insert their card into the device, which will generate a four digit code.

The code can then be inputted into the website and checked independently with the customer’s bank. If the code is authorised, then the transaction takes place.

Visa is not the first company to provide an offline solution to web card theft. In October Lloyds TSB began trailing an internet banking keyring which provides a unique six digit number each time a customer wishes to use the service.

The news came after the Association of Payment Clearing Services said that “card not present” fraud ñ incorporating online, phone and mail order theft ñ had risen by 29 per cent between January and June 2005.

The body worryingly discovered that half of women do not know what a phishing attack is, whilst 25 per cent of shoppers do not check that online retailers are secure before using them.

© Adfero Ltd

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