July 14, 2009
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News: Electronic Identity Systems
Have you ever considered what happens to your credit card information during a purchasing transaction? I guess consumers are so bewildered by the whole technology process that they choose to ignore the details and focus on the benefits of swiping their card. It is however, of great concern because many credit card and identity theft criminals infiltrate the transaction process to acquire the information required in carrying out their criminal activities. These predators have become the main focus for credit card companies, electronic payment processing companies, and law enforcement. Because so often the chain of events that set off the criminal activity often begins with the transaction, it is vital that interested parties understand the process and seek out its vulnerabilities.
According to recent statistics, cases of identity fraud account for over $2 billion a year in losses. It's difficult to say how much of this can be attributed to the transaction process or how much might have resulted from an inadequate verification process when the application for the credit card was originally reviewed. However, in designing a security mechanism that would take place at the point of sale, examining the transaction process is crucial. While manufacturers continue to seek out new innovative security devices, there are already a number of products currently available to the credit card industry.
It's important to understand that while there are several security mechanisms already available to credit card and payment processing companies, each have their drawbacks and vulnerabilities. It should also be noted that although there are many highly capable and technology savvy inventors, there are equally the same number of creative and intelligent criminals infiltrating the entire system. To take a closer look at some of these innovation security mechanisms which include Biometrics, Cryptographic, Tokenization, and Near Field Communications (NFC) systems, visit our article series on Electronic Identity Systems.