Credit Card Fraud and Pins
News 03 10 2009: Consumer groups are calling for Banks to change their approach to card fraud when a customer’s pin is used after the theft of a purse or wallet. Some Banks are now turning down claims on the basis that their customers had a copy of their PIN with their card within the items stolen. In one case a persons wallet was stolen in <?xml:namespace prefix = st1 />London after which £100 cash was withdrawn from an ATM followed by a shopping spree costing of over £2,000. Although the Bank “accepted” the ATM transaction as being fraudulent by refunding the £100 it then refused to accept that the “goods” were purchased fraudulently too.
What such Banks may be really announcing is a misalignment in systems within the Financial Industry. Could it be said that with Internet Banking and ATM’s one is dealing directly with ones bank whereas purchases via Traders be about Financial Clearing Houses providing authorization through being allowed some access into Banking System databases for its business activities?. Given the situation unfolding Traders may be forced into accepting more responsibility as to their customers Identity when making purchases with “plastic” however what is most unusual is the “take” custom as oppose to the “give” custom in the Financial market place which can promote fraud. At present a customer generally provides his/her Banking details to those wanting payment such that they can “take” (debit) ones Bank account whereas the opposite is about a Trader providing their Banking Details such that a Customer can credit (give) their accounts while protecting their own details.
Of other measures:-
(1) Customer images on cards which could be displayed on POS terminals and verified with images held on trusted financial databases – open to ALL and visual confirmed.
(2) Plastic Cards incorporating a secondary PIN unknown to the Customer which is over written by a Central database (secure) on every transaction – this serving to “change” the cards “Identity” at every use in being unique thus making any existing cloned cards inoperative. If a cloned card quickly come into existence then it must be used before the original card holder uses theirs however and more importantly given that two cards now exist for the same account the use of the “outdated” card by either would alert the system that a clone exists and thus deny all further transactions for that same account number – the original owner now needing to contact the Bank for a New hidden PIN (reset).
Cash unacceptable: Although paying cash for Motel Bills in touring New Zealand ( North Island ) I did come across one Motel that refused cash. I would have accepted it as being house rules however in saying that I had paid cash at all the other Motels stayed at on the Island I was told that thatwas impossible!. With the cash on the table and my refusal to hand-over my Banker Card Details the Motel Owner became extremely angry telling me to leave his premises. This was to be my last stop before arriving back in Auckland the next day yet given my tiredness and late hour it didn’t matter any more given the abuse as I headed back on a car journey to Auckland in darkness.
Over three years I’ve used many many hotels as my home in various Countries and where a refundable deposit be payable in addition to a room charge yet seemingly Western Culture is more about using “plastic” above that of cash through “distrust” as to people in favour of Banks carrying such burdens.
Professionally it is said that “The customer is always right” but given Nations now so dependant upon Tourism and tourists seeking stimulation by paying to be in new unfamiliar environments/cultures how does this modify the former statement?. We read of German tourists in London told by the Police that they must delete their camera images in the name of terrorism causing them great frustration & intolerance while also destroying a future tourist trade market through such actions. Terrorism is another way of saying “trust nobody” while tourists go home painting bad pictures of Countries that their Nationals don’t wish to see for themselves!. Plastic and Cash is also about trust and given global markets it only takes one card to fall in creating a cascade of distrust and failure.