Online fraud fight 'needs new technology'

27 November 2008

An additional level of security is needed to address the issue of online credit fraud, a spokesperson for Equifax has asserted.

He explained that a general view in the industry is that new technology is needed to help combat the problem and suggested that two-factor and three-factor authentication systems may be a better solution than additional passwords.

"More and more card operators for example - and other organizations - are beginning to get involved and look at more levels of authentication," the spokesman said. He added that some cards now have readers that generate a random number - known as two-level authentication.

Research published by UK payment agency Apacs last month found that during the first six months of 2008, plastic card losses increased by 14 percent and online banking fraud losses rose by 185 percent.

Meanwhile, a study by Symantec has shown that some 31 per cent of the total goods and services advertised on the underground market is information about credit cards.

The study also found that the average advertised credit card limit for these stolen cards totalled more than $4,000.

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