May 7, 2009
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News: Ericsson IPX Fighting CC Fraud
Employees of Ericsson IPX, a global internet exchange provider, who became victims themselves of credit card fraud, set out on a mission to fight the criminals. Ericsson is currently developing new technology that could locate the user’s position and assist in determining if the credit card transaction is fraudulent. Some of the company’s employees who had their own cards blocked because of suspicious activity say the new technology can determine the geographic location of the user within seconds. While on a trip to Stockholm, Donya Ekstrand, head of marketing for Ericsson IPX, was notified by her credit card provider that her card had been used in Tokyo. The thief continued to rack up charges on the card for another 30-35 minutes even after the activity was detected. Ekstrand couldn’t believe with all of the global technology that this could happen.
SC Magazine reports that Peter Garside, Ericsson IPX UK and Ireland director, says that the new technology could feasibly locate which country the user’s phone is in and approximate where the person is located. Furthermore, Garside speculates that almost everyone who has a credit card also has a cell phone. Having the capabilities of knowing where the individual is and where the credit card is being used would allow the bank to determine if the consumer is really the one making the purchase. The new technology is still in the developmental stage; however, the company intends to pursue its promotion.
Ekstrand also indicated that the new mobile phone technology would have the potential to send out a Short Message Service (SMS) to the credit card consumer upon detection of the suspicious activity. The company maintains this would be a welcome benefit for cell phone users since a SMS is less expensive than an overseas call. Ericsson has been speaking with representative of banks on the use of the technology; however, says that further testing must take place to assure its compatibility with the global infrastructure.