Visa is stepping up the fight against card not present fraud by launching a new credit card that comes with its own PIN entry keypad. Consumers use the entry system to obtain a unique code that allows them to authenticate purchases online and over the telephone, ZDNet.co.uk reports.
Card not present fraud occurs when fraudsters obtain credit card details and use them to buy goods and services where PIN numbers are not required - for example when making purchases over the internet or through mail order.
Visa claims its new card - which was unveiled at the Cartes and Identification Show in Paris last week and is due to be trialled within the next few months - will help to reduce the risk of such fraud occurring by introducing an extra layer of PIN level protection.
When making online and mail order purchases, credit card customers simply type their PIN number into the entry pad, which will display a unique code that they can then use to validate their purchase. The card also features an LCD display that has a battery life of up to four years.
According to figures from the UK payments association Apacs, losses incurred as a result of card not present fraud totalled £290.5 million last year, up from £95.7 million in 2001.
