HSBC's decision to introduce technology that will check every single card transaction in a bid to end card fraud has been welcomed.
With the latest APACS figures (Oct 2008) reporting a 185 per cent increase in credit card fraud, Gavin Bradbury, director at VeriSign claimed that this was a sign of one institution leading the way by taking action.
Bradbury said: “It's great to see a major bank deploying new technology in a bid to put an end to card fraud. This move reinforces the fact that financial institutions and online businesses should really be taking more action against criminals by putting additional security measures in place.
“Online fraud in particular is rising and organisations need to start implementing technologies that will protect their customers from threats such as phishing or man-in-the-browser attacks.”
HSBC's new technology, which will mean that every credit card transaction will be scrutinised for fraud, will affect 10 million card accounts and millions of transactions.
Bart Patrick of SAS UK, which is providing the software system for HSBC, said: “Card fraud is an arms race. The banks will come up with one way of dealing with it; the fraudsters will come up with a way round it. What we have seen with chip and pin - it was successful for 18 months, two years - the fraudsters have worked a way round it, so we are now looking at more sophisticated means.”