Mobile Phone Chip and PIN Set to Cut Credit Card Fraud

2007-05-22 12:41 600

LONDON, May 23 /Xinhua-PRNewswire/ -- securePay, a new transaction security system to foil internet, mail and telephone card fraud, is announced today by the Telsecure Group. The launch by Telsecure, a UK-based provider of leading-edge technology, is being made in association with partners, Sybase365 and Ingenico.

securePay operates as a global multifunctional platform with a single point of integration with card issuers, providing a single platform for mitigating fraud in circumstances where the cardholder is not present (CNP): internet, mail and telephone order (MOTO) transactions, on-line banking authentication and ability for the consumer to switch cards on and off in real time, thereby emulating Chip and PIN levels of security in the CNP area, dramatically reducing fraud and chargeback administration costs. securePay achieves all of this without any need to modify the mobile device which is used to verify, authenticate and confirm the transaction.

The announcement of securePay follows four years of research and development culminating in a product compliant with industry standards and protocols such as PCI compliance, ISO, APACS, ZKA, BASE 24 VisaNet and MCI. The certification of securePay is performed by Sagentia, UK. Mobile connectivity is available globally through Sybase365 and the leading chip and PIN manufacturer, Ingenico. The same platform will also provide a range of services built around the core of consumer verification, for example to secure multi-factor access for online banking and consumer initiated card management.

Rashid Qajar, Chief Executive of Telsecure Group: "While chip and PIN has succeeded in reducing fraud in the retail environment, fraudsters have switched to internet, mail and telephone ordering transactions for their rich pickings. The problem has never been bigger and I am very pleased to announce that we have a product that can practically eliminate such risks once adopted by the banks and their customers."

CNP fraud which now accounts for half of all card payment fraud in the UK, has doubled in the last three years rising to GBP216.6 million and growing fast. This high level of crime involves UK banks spending GBP55 to GBP85 per fraudulent transaction in administration, a cost that is inevitably passed on to customers. securePay will work with all 730 global mobile communications network providers. In the UK, there is 99.8% coverage of the networks.

Lars Wallin, Director of Telsecure Group: "Our financial models show that the banks will achieve significant savings on the cost of administering fraudulent transactions by adopting the technology. The banks are looking at a return on securePay investment that is highly geared with payback in less than a year while their customers will be able to shop online with greater security. In addition, securePay can be adopted by banks for substantially less than alternatives now under consideration such as card readers, meaning lower charges for customers: it's a win-win situation."

Source: Telsecure Group