Showing posts from September, 2014

How to fix credit and debit card fraud

(The-Asterisk asterisk: I was writing this post before the Apple announcements on September 9, 2014)

I am not an expert in the minutiae, but I know a bit about security. Here is my 'simple man' idea to fix the rash of fraudulent credit card charges and debit card withdrawals happening more and more these days.

Let's first stipulate that just about everyone has a smart phone onto which an app can be installed, or to which a text message can be sent.

Every credit card on file would be registered with an app installed on a phone belonging to the cardholder. Even with multiple cards of various types, the user would be covered (hopefully by a single app.)

So, when you go into Target or Home Depot to make a purchase with your compromised credit card, you swipe it at the point of sale (POS) and during the verification process, a challenge procedure is triggered. The credit card clearing house would send an alert message to your app (or a text message to your phone). This message …