Securing Credit Card Transactions
Anyone who owns credit cards must have heard of the hackers who got into the TK Maxx database and stole information on millions of debit and credit cards. This is probably the biggest breach so far in online history. It has brought to those who have credit cards the supreme importance of having secure credit card transactions.
Hackers will always try to crack open any electronic repository of information on credit cards. There is big money involved. Despite the huge volume of credit card numbers stolen in the TK Maxx breach, the market value for stolen credit card numbers in the Internet underground has remained about the same: basic stolen data consisting of credit card number plus security code is said to be worth around £3; but if that credit card number comes with more detailed information such as the CVV number and PIN, the value could rise to £9. TK Maxx have insisted that the data stolen consisted only of credit card numbers.
Hackers can easily sell the information they steal. It is those who buy the information from hackers who proceed to raid your credit card account.
You may be vulnerable at the retailer’s store. Their point-of-sale (POS) systems read and store the data contained in the magnetic stripes on your credit cards. These systems are often accessible from the Internet and could become easy targets for hackers. Retailers are still reluctant to spend money to make their POS software more compliant with more advanced security standards.
Issuers of credit cards are using ingenious ways to stay ahead of these identity thieves. You may have to pay a little fee, but in exchange your credit card issuer can add stronger authentication procedures such as a unique one-time use password that is downloaded to your credit card for every transaction you make with it.
This means that the users of credit cards would need to have the physical card in order to complete a purchase, not just the details about card number or security code or expiry date. Thus, information on credit cards that may be lost due to data breaches will no longer be as threatening to the integrity of the credit card account.
Credit card issuers will be making greater use of credit cards that include built-in smart chips that help preserve Internet security. These computer microchips built into credit cards contain certificates of authenticity that can provide added security when you make online purchases from your PC. Instead of using your actual credit card number, you are given a temporary card number and expiration date to enter. At the online merchants’ end, they will need to be equipped with smart chip readers.
The idea would be to have Internet purchases verified by something you have on you, such as your credit cards, in addition to something you know. Would-be identity thieves would now need to have actual possession of your card plus knowledge of your personal identification number in order to make a purchase. These added layers of verification will help improve the security of transactions on your credit cards.
Back To Financial News September 2007 |
