MASTERCARD IS HOPING to thwart fraudsters with the launch of a mobile based two-factor authentication system.
The system forms part of the association’s Chip Authentication Program (CAP) that will allow punters to verify their banking and online transactions through their mobile phone rather than having to use a dedicated token or personal card reader.
There are two versions of the application. The first uses text messages to send a verification password that the user will have to enter within a certain timeframe in order to authenticate an online purchase or mobile banking activity.
The second version is an application designed to run on smartphones or other Java compatible devices. In this case the cardholder is prompted to key in a PIN and then a dynamic password is generated
“The simplicity of this approach may be evident but the innovative proposition and the suite of solutions that we have now in place with our partners provides a sophisticated and unrivalled offering to our bank customers” said Art Kranzley, chief emerging technology officer, advanced technology, MasterCard Worldwide.
With figures showing that online banking and ecommerce fraud is on the rise, Mastercard hopes that this system will help counter phishing and man in the middle attacks, while removing some of the inconveniences associated with having to use a separate device such as a token.