We could stop credit and debit card fraud overnight, but I need martins help.

Any

FireworkCrazy wrote: »

OK. so I might aswell tell you what it is now.

Simple, Every time you make a purchase or cash withdrawl from your card you get a text message to your mobile with the full details of the transaction. If you haven't made the transaction you can reply to the message with a simple code to put a stop on the card.

The only way a fraudster would be able to use a dodgy card would be to either sign up for it and give the bank a false mobile number or hack the bank to change the number, but even then you would get an alert to the old number first.

ITS NOT ROCKET SCIENCE!

Well, there is easier system in different coutries and it works fine. Only brits for some reason have allergy to the idea of ID cards!!
For example, in Eastern Europe:
-They have ID cards and they live with it without moaning. Appart from anything else it helps getting drinks in the pub if they look too young and don't drive:-))
-They go to the bank to pick up the cards in person in the bank and proove their ID (sometimes it's pain, but it saves thousands and millions ££ in fraud) - no worry there that the postman nicks your card one day and PIN the next day. If he is your postman believe me he will have your date of birth as well from different letters.
-Some banks issue their cards with picture on it
-Retailers abroad want to see an ID (could be passport) for most card transactions in a shop (I had to show my passport when I paid by card in Spain this summer)

I cannot really see how your ide will help... Can't you already check your statements on the internet every minute of every day and call customer services if the transaction is not genuine???

nzseries1

My bank are not getting my mobile number. End of story.
Once I gave it to A&L, saying "you can only use it to contact me on the status of my application, and that's all, no spam texts please".

What a mistake. Spam spam spam. Endless spam texts.

If my bank forced me to use my mobile phone to do my everyday shopping in the way the OP has described (or indeed any way), I would be changing banks so fast it would make their heads spin.

ali82

I think this is a really good idea, well done

Yes some people don't have phone but the majority does so it could be more of an opt in or out system rather than compulsory. Mobile phones ant network coverage are a lot better than they used to be and if the banks and phone operators are working together it might give the phone companies more incentive to improve their signals. I see what you mean but the SMS message doesn't have to be instantaneous as long as it is within a few minutes or so. One down side I did see is that people may say they did not purchase good therefore 'reject' they transaction in order to obtain free good

PROLIANT

A one time programmable chip that stores your finger print, it will only work when your finger print is present, with technology advancing as fast as it is today, we could have a wafer thin module that would fit inside a Visa that would read your finger print and a simple software algorithm stored on the chip to verify that you are the authorized card holder...or just do away with plastic and have finger print readers at the point of sale etc, swipe your finger, select the money network i.e. Visa debit or Visa credit linked to your accounts and job done. This would work equally well online as most HP/Sony laptops come with finger print readers as standard.

LilacPixie

NickX wrote: »

There is no such thing as a joint account with a Credit Card. All responsibility for the account lies with the Primary Cardholder, so I would think that the text would just go to the Primary Cardholder.

In fact this is another advantage, the Primary Cardholder becomes immediately alerted to any transactions that an Additional Cardholder may have made.

How often do posters come on here complaining that their ex has run up debts in their name because they had an Additional card ?

People are knocking this idea rather quickly, and whilst there are drawbacks, I still think its not a bad idea and people could be given the option to opt-in for it.

The thread is entitled 'we could stop credit and debit card fraud overnight.' I have a debit card on my joint current account. So would I get a text everytime OH takes money out for lunch??. Or would he as the first named on the account get a text saying how much I had spent at the hairdresser or where ever. I doubt my husband would be interested and would probably delete it without opening or if he did read it he would not know if the transaction was genuine or not.

Same goes for our credit cards. He has a mastercard with me as an additional holder and I have a visa with him as additional holder. I do not know in advance what transaction if any he will make and in the same way I don't tell him.

I don't give my mobile number to my bank/credit card company. Rbs used to have it but they used to call me and send texts trying to sell me things despite me being opted our of such calls.

I actually think such a think may encourage rather than deter abuse. No doubt someone somewhere will start texting people with something like:

'Transaction Alert. Your card has been used in the merchant 'amazon' transaction value 264.29. If you did not make this transaction please call 0845 111 1234'.

When you call that number (as no doubt many would) you will be connected to a offshore call center, asked to confirm details, passwords etc told that they will investigate and before you know it you accounts are emptied, cards maxed out and your own real bank won't want to know because it was you who disclosed your personal details

I think this idea is a bit like communism.. seems reasonable until you actually think about it.

LongTermLurker

Any wrote: »

Well, there is easier system in different coutries and it works fine. Only brits for some reason have allergy to the idea of ID cards!!

-Retailers abroad want to see an ID (could be passport) for most card transactions in a shop (I had to show my passport when I paid by card in Spain this summer)

I've never been asked for my passport with a credit card while abroad, and that covers most of Western Europe and some places further afield. Before they brought out chip and pin I used to get odd looks from retailers who wanted me to put my card into the keypad and I had to signal that they needed to use the old "drag and imprint" machines instead.

I don't see how ID cards would possibly combat credit card fraud, and certainly not over the phone or online. I think you're just talking about the risk of having the card stolen when it's issued - banks combat that by making you phone up, with passwords etc, to activate all new cards (it also allows them to try and sell you insurance, but that's another story :mad:)

patrick1

ASB Bank in New Zealand does something similar if you want to transfer money using phone/internet banking - it sends a text with a code and you have to quote the code to validate the transaction.

The main problems I'd see are:

• would consumers bother to sign up or just claim they don't have a mobile? After all, as it stands now, the law makes the credit card company liable for fraudulent transactions - so there's little incentive for consumers to take part
• would it be cost effective? The margin that CC companies make on transactions isn't that big. Would the cost of setting up the system, the text message costs, the admin costs and so on outweigh the benefits? After all actual fraud is a small percentage of the millions of transactions that take place

I'm surprised more banks don't implement a system like Cahoot has/had whereby for internet transactions you'd get a one off credit card number for each transaction. That way if the website you used it on was hacked then your number couldn't be reused.

Any

LongTermLurker wrote: »

I've never been asked for my passport with a credit card while abroad, and that covers most of Western Europe and some places further afield. Before they brought out chip and pin I used to get odd looks from retailers who wanted me to put my card into the keypad and I had to signal that they needed to use the old "drag and imprint" machines instead.

I don't see how ID cards would possibly combat credit card fraud, and certainly not over the phone or online. I think you're just talking about the risk of having the card stolen when it's issued - banks combat that by making you phone up, with passwords etc, to activate all new cards (it also allows them to try and sell you insurance, but that's another story :mad:)

Well, I was asked for ID many times abroad. Maybe I look dodgy - or you haven't even been abroad.
So you don't see the opportunity here that the retailer can ask to see the ID then?? Especially for larger purchases?
You are right about the shopping over the phone or on the internet though.
Even though I think that person passing credit card details over the phone must be clearly brainless - it't about 20 second job to hack someones phone line.
I think actually that there would have to be many of these protection systems combined together...
I think the system where when you purchase something on-line you have to verify by inputing your password. It's called "verified by VISA" I think..

lesley1960

bitterSTAR wrote: »

You should be notifying your credit card company everytime you change your phone number anyway!

i would give them my landline number , not my mobile number

mr_jetlag

There are 2 types of card fraud. One is when the fraudster has physical access to your card (card-present) and one is when your number and details have been sold / nicked and they use them to buy things online or clone a physical card (card-not-present).

The big headache is card-not-present fraud, since you usually know if your wallet / cards have been stolen and can call to cancel them quickly enough.

The text system FWC has outlined above is certainly one way of reducing this, however with the weaknesses everybody has already pointed out (phone coverage, spam, etc)

The banks are using other methods (VbV, one-time use numbers) which are very secure but also complicated for the average user who just wants his card to work in stores, but also work online.

The only way to finally combat card-not-present fraud is to put something on the card itself which is unique and one-time only. I've seen suggestions for a random SecureID number in addition to your cardnumber. You put that number in when making a purchase online which verifies you actually possess the card.

However, until we can make a number generator light and thin enough to be ON the card itself, it's just another bulky thing to lose. The main problem is the thickness of the battery.

While I'm not knocking the OP's idea, the banks and credit companies HAVE thought about it before, and while it's not ROCKET science, there's a lot more science involved than people think.