How Biometric Smart Cards can Prevent Card Not Present Fraud

Welcome to the 4th and final blog post in our series on Card Not Present transactions. In this post, David Orme, SVP Sales, and Marketing at IDEX Biometrics discuss how a biometric smart card can prevent card, not present fraud. The previous post in our series on Card Not Present looked at how to assure strong customer authentication for E-commerce transactions.

The use of biometrics to protect data isn’t new. It has been growing in popularity, and its presence is more notable today than it has been previously. Most people have devices that they unlock with a fingerprint, without even thinking that the implementation of that technology is helping to keep their personal information more secure than ever before. Expanding this technology to protect your personal financial data is a common-sense step to fraud prevention.

Card Not Present Transactions

‘Card Not Present’ transactions occur when a payment is made without the cardholder presenting their physical card to a retailer. These types of transactions are the most susceptible to fraud. While security exists to help prevent this type of fraud, retailers mostly shy away from adoption of the protocol known as 3DS, preferring to circumnavigate the securities imposed in favor of ease and convenience. This preference leaves data vulnerable to breaches, increasing the likelihood of personal information being stolen.

Security Retailers Can Work With

‘Card Not Present’ transactions present unique challenges to the retailer; they require an ability to obtain accurate and correct information on the cardholder, while not requiring the buyer to jump through so many logistical hoops that they decide not to make a purchase or expose themselves unnecessarily to potentially fraudulent activity. It is essential for consumer data to be secure and verifiable quickly and efficiently. A biometric smart card is a way to achieve this security that combines ease of use with assured protection of consumer data.

Fingerprint Sensors of the Future

Biometric smart cards are the security of the future. The fingerprint sensor in a smart payment card does not store the sensitive and unique fingerprint data anywhere other than inside the tamper-proof secure element on the card, making it nearly impossible to be used by anyone other than the consumer to which it belongs. Smart card payment systems will return the protection of personal data back to the hands of the consumer.

Adding an additional layer of security using a digital dynamic CVV or CVC number further reinforces the strength of the biometric smart card, and virtually eliminates the possibility for fraudulent ‘card not present’ transactions.

Security measures and biometrics have both come a long way in recent years, with biometric smart cards being one of the most recent and continually evolving security technologies available. The future of data security lies in achieving the most robust possible protection for consumer data, with an ease of use factor that allows consumers to pursue their e-commerce purchases with ease and confidence.

The previous post in our series on Card Not Present looked at assuring strong customer authentication for e-commerce transactions.

The previous post in our series on Card Not Present looked at how to assure strong customer authentication for E-commerce transactions.