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VeriSign To Offer Passwords On Bank Card
Billosaur writes "Imagine the PayPal security tool embedded on a credit card. VeriSign is announcing that a deal is in the works to provide credit cards with one-time-use passwords. By placing the technology directly on the card, it becomes more convenient and provides an extra layer of security for online credit-card transactions. A cardholder would type in their information as normal and then would be prompted to enter the passcode displayed on the card. This means a user would need to have the physical card in hand in order to use it, thus thwarting identity thieves who steal credit card information but do not possess the card itself. VeriSign said it expects to announce a major bank using its cards in May."
This technology has been around for some time actually. If there are any smart card developers hanging about, they might point you in the right direction.
As someone with intimate knowledge of bank card costs and the infrastructure required to support a new bank card, the likelihood of this happening is slim to none. "Impossible!" you say. Please consider the following.
1. The cost of producing these cards is extremely high relative to the plastic most users have. On order of 10x.
2. The costs of integrating a new kind of card into banking/CRM infrastructure is another huge cost center.
3. The banks can't shift the costs of this new-fangled card off to the merchants. FYI: The merchants shift the cost of accepting bank cards and paying for fraudulent transactions to all consumers.
The project will be a nice idea that they can use as an example to regulators that they are "enhancing customer security." but is destined for the shelf.
What's needed here is an OSS banking system, not the one we currently have.
http://www.maxineudall.com/2010/02/should-economists-be-sued-for-malpractice.html
Because the number will change every minute or so. Just like the FOB from paypal. Basically what they are doing is taking that FOB with the LCD and changing the form factor to be a credit card (complete with mag stripe). Someone could steal your CVV or trick you into giving it to them. That becomes a lot more difficult with these one time passwords when the number changes all the time.