Making credit cards secure
Coming to an online bank near you: the hackproof credit card.
(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.
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 yearsclick here.
From the May 1, 2007 issue