MasterCard seeks to stop online fraud with selfies, fingerprints
One in ten people were victims of online fraud on their credit or debit card in the last year, according to new research from comparethemarket.
In 62% of cases, money was successfully removed from the account with an average of £475 stolen.
In Great Britain because of online fraud, 4.5 million credit or debit cards were canceled in the last twelve months with more than £2.1 billion stolen in total.
- 31% were hacked when making a payment online
- 10% had their card duplicated at an ATM
- 8% hacked when making a contactless payment
The research also reveals that for many, ‘getting hacked’ acts as a wake-up call. Of those who had been hacked in the last year, 41% of people said they were considering changing or had changed their bank or credit card provider. Nearly half (49%) said they now check their bank accounts more regularly, a third (33%) never give bank details over the phone and 29% admit to paying for more items with cash and making online transactions less frequently.
Jody Baker, head of money at comparethemarket.com, said: “We’re constantly being warned of the dangers of cyber-attacks but it is still a shock if it happens to you. Most of the transactions we make now are digital and our research suggests that over a quarter of people carry as little as £10 in cash. With so many of us shopping and banking on the internet, combined with a rise in contactless payments, it is more important than ever to be vigilant when managing your money. It is a good idea to regularly check your bank statements for any unusual activity as criminals often make small but regular thefts which are harder to spot than larger one-off purchases.
Online fraud has Credit Card companies working hard to find ways to mitigate the plague. MasterCard has the new biometric technology for verifying customer identities during online shopping transactions. MasterCard has been testing facial and fingerprint recognition software, called Identity Check, in the Netherlands, Canada, and the U.S., as a way to fight online fraud.
A technological move they made before (the embedded computer chip) reduced fraud from counterfeit cards by 54%, said Ajay Bhalla, president of enterprise security solutions at MasterCard. Criminals have regrouped to focus on internet transactions, where no physical card is used. “Fraudsters have a business model, too, so we see [fraud] moving to ‘card not present’ transactions,” Mr. Bhalla said.
Soon, using Identity Check, the shopper submits a selfie or fingerprint via a mobile app from MasterCard that authenticates the image. Consumers shopping via laptop or desktop computer would receive requests for the biometric data through a text message sent to their smartphones.
The technology is part of a larger effort at MasterCard to fight online financial fraud that includes a transaction-monitoring system that American Express, Visa, Wells Fargo & Co. and others are testing eye scans, voice recognition, and other biometric technology to better secure transactions. MasterCard announced the Identity Check technology last October and has been testing it.