With the risks involved in credit card management and security and fraud constantly evolving, companies continue to look for new innovative ways to enhance consumer security.
US Department of Justice data shows that the average amount stolen per card in 2012 was $399 out of an estimated $5.55 billion stolen worldwide, a huge sum that certainly served as a motive.
Photo cnet.com
The recent Target breach proved that credit cards are at the top of hackers' preferences, which can lead to significant financial losses, and as the Consumer Bankers Association reports, reissuing compromised cards has already cost over $172 million.
Following such incidents came MasterCard's announcement last Tuesday, which said it was working with Syniverse, a mobile phone company, to minimize unauthorized purchases made with stolen plastic.
The two companies already have an opt-in pilot system in development that allows users to make a credit card transaction only when they have their mobile device enabled to confirm a specific geographic location.
The service providers then cross-check the locations of both the credit card and the mobile device at the time of the transaction and if they match the transaction proceeds normally. Otherwise, if the card is in Toronto, for example, and the smartphone is in London, the transaction should be disputed.
Joe DiFonzon, chief technology officer at Syniverse, told the Guardian:
Once a mobile phone connects to the telephone network we can see a user's location within milliseconds.
The technology will benefit both MasterCard and its customers by making it more difficult for criminals to use stolen or cloned credit cards.
MasterCard says it will offer prepaid data plans for popular destinations so customers won't be charged for data roaming even if they're not in their home country.
