Making credit cards secure

Coming to an online bank near you: the hackproof credit card.

By Sidra Durst, Business 2.0 Magazine

(Business 2.0 Magazine) -- How do you stop a thief who has your credit card details -- but not the card itself -- from going on an Internet shopping spree?

Every year $13 billion is lost to such online fraud, which is why Los Angeles-based Innovative Card Technologies will debut a credit card with a constantly changing code this fall.

The DisplayCard has a built-in screen showing numbers that change when you press a button. Any website or online bank that buys into the system will have the same number at the back end. In January a Brazilian bank became the first to use it, and InCard CEO Alan Finkelstein says one of the largest U.S. banks has started a pilot program.

"A card that uses cryptographic capability is ideal for logging in to your online banking site," says James Van Dyke, founder of Javelin Strategy & Research.

It could also replace the bulky key-ring fobs that employees use to log in on secure networks -- an estimated $500 million market. Irish startup Orbiscom and QSecure, based in Los Altos, Calif., are developing similar devices. But in the race to augment the world's 2.6 billion credit and debit cards, InCard has a secure lead.

NUMBERS GAME

InCard was able to squeeze all this into the corner of its plastic:

Energy-saving electrophoretic display and quartz timer

Microchip containing the algorithm to generate each new passcode

Ultrathin lithium-ion battery, good for three years

A buzzer that sounds when the user presses it to change the number Top of page

To send a letter to the editor about this story, click here.

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.