July 13, 2009
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News: How Safe Is Electronic Identity?
Near Field Communication (NFC), and Universal Subscriber Identity Module (USIM) what does it mean and how is it related to credit card security and identity theft? While the financial world seeks to find electronic identity systems that will assure the security of consumer information, consumers have become willing to jump on board with most any new technology without question. New technologies such as the NFC and USIM chips are being embedded into cell phones that enable the consumer to perform a variety of operations including processing credit card payments. During the process, valuable personal information is being transported from one entity to the next. Most will agree that securing this information is of vital concern and remains a top priority for all organizations. What most don't agree on is where the process of securing an individual's identity begins and what the best way to secure it is. Does it begin at the point of sale when the consumer is using their credit card or does it begin long before that?
Let's look at how identity is established. An individual provides personal information to an organization for the purposes of obtaining a benefit. For example; a consumer submits an application to a bank for a credit card. The bank, which is considered a trusted authority, processes the application and verifies the consumer's identity. The bank extends credit to the consumer by issuing a plastic credit card. The consumer uses the card to secure goods or services. The provider merchant accepts the card in payment under the authority of the issuing bank who they believe has verified the authentic identity of the cardholder.
We can see from this scenario that if the identity process isn't accurate from the beginning, the system is flawed. The question then becomes, how does the bank verify that the credit card applicant is a real person and that the individual presenting himself as such is truly the real person? Wow, that's a mind boggling thought. Read our articles series How Safe Is Electronic Identity to learn more.