Visa takes carrot-and-stick approach to security

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Missed opportunity for credit card security

The credit card companies could have implemented many security policies a long time ago that did not require high-tech solutions, but just weren't interested. Examples:

1. Instead of requiring customers to write a credit card number on a check when mailing a payment, they could have created a one-time unique serial number, known only to the customer and the credit card company. So, if the mail were stolen, no ID theft could occur.

2. When ordering merchandise by phone, the credit card companies could issue cards that restrict delivery to the address on record, so a stolen card could not be used to buy items that were shipped elsewhere.

3. Credit cards specifically intended for online use could have fixed maximum credit limits, perhaps as a secondary card, so that if the card or number were stolen, it would limit the amount of damage done. Instead, credit card issuers continually raise credit limits on good customers, thereby increasing the risk of loss if the credit information is stolen.

4. Credit card numbers could be of a more temporary nature. A customer's regular number might be set to expire in a year, so that each card renewal resulted in a new number, thus decreasing the value of a stolen card.

5. Finally, with proper controls, a card issuer could find a means to create temporary, one-time-use credit card numbers. This has been attempted by a few companies, but not widely adopted.

Credit card fraud and identity theft hurt everyone, but the card issuers have dragged their feet for years, and they are simply asleep at the wheel. Yes, a few steps have been taken recently, but they could have done so much more, if only they cared.

Posted by: A.Typical Zork   Posted on: 12/12/06 You are currently: a Guest | Members login | Terms of Use

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