NAB to roll out anti-credit card fraud software

Mozo

Thursday 24 June 2010

National Australia Bank (NAB) is rolling out an innovative, software-based technology for tackling credit card fraud, it has been revealed.

Credit card machine content

The "liquid encryption number" (LEN) technology, which has been developed by the Bank of New Zealand (BNZ), involves changing numbers on a card’s magnetic strip every time a transaction takes place or an account balance is requested at an ATM, reports NZPA.

This solution combats a common technique used in many card "skimming" frauds where criminals electronically copy and accumulate card details.

It has already been applied to all BNZ credit and debit cards, cutting the incidence of fraudulent transactions from "cloned" credit cards by 50 per cent.

Such news may interest Aussies wishing to compare credit cards in search of the best safety features. NZPA noted that other counter-fraud techniques available to banks include radio-frequency jamming, which uses an electromagnetic field to detect readers mounted on the outside of an ATM, camera surveillance and devices that sense vibration, such as when an ATM is drilled to attach a skimmer.

Meanwhile, it was revealed last week that IMF Australia, the company funding a huge compensation claim for "unfair" bank exception fees on credit cards and other financial products, is currently putting together a $10 million war chest to fight the case.

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