Wednesday, January 07, 2009
Passwords to stop credit-card abuse
2009/01/07
The National Consumer Complaints Centre revealed that lost credit cards had been used for purchase of petrol.
The centre received at least 1,000 complaints of lost credit cards being used at petrol stations last year. In 2007, the centre received 809 complaints.
To combat this, NCCC chief executive Muhammad Sha'ani Abdullah has suggested the use of a password when using credit cards at such outlets.
"We have to make it difficult for the culprits to use stolen credit cards. Now it is easy since they only need to swipe the card at the petrol pumps without any authentication," he said yesterday.
Also present were Consumer Research and Resource Centre chief executive Paul Selva Raj and Fomca deputy CEO Siti Rahayu Zakaria.
"The use of a password could protect card holders when they make online and phone transactions."
NCCC also proposed the use of Transaction Authorisation Code (TAC), which is a unique code that is a compulsory requirement for transactions.
The TAC will provide a second level of authentication as a security check before performing specific transactions.
Sha'ani said the TAC could be sent to one's mobile phone, adding that several banks had started using this system.
Banks must equip themselves with state-of-the-art security systems which could flag any suspicious credit-card transactions.
"Financial institutions which had failed to do so should not be given the facility to issue credit cards," he said.
"Bank Negara must also institute guidelines on the recruitment of credit-card users and must prohibit third parties from getting involved in credit- card recruitment other than licensed banks."
All these suggestions would be forwarded to Bank Negara this week.
Passwords to stop credit-card abuse
By : Azura AbasMuhammad Sha’ani Abdullah says banks must have state-of-the-art security systems. |
PETALING JAYA: There is an urgent need to impose tighter security measures when credit cards are used at petrol stations.
The centre received at least 1,000 complaints of lost credit cards being used at petrol stations last year. In 2007, the centre received 809 complaints.
To combat this, NCCC chief executive Muhammad Sha'ani Abdullah has suggested the use of a password when using credit cards at such outlets.
"We have to make it difficult for the culprits to use stolen credit cards. Now it is easy since they only need to swipe the card at the petrol pumps without any authentication," he said yesterday.
"The use of a password could protect card holders when they make online and phone transactions."
NCCC also proposed the use of Transaction Authorisation Code (TAC), which is a unique code that is a compulsory requirement for transactions.
The TAC will provide a second level of authentication as a security check before performing specific transactions.
Sha'ani said the TAC could be sent to one's mobile phone, adding that several banks had started using this system.
Banks must equip themselves with state-of-the-art security systems which could flag any suspicious credit-card transactions.
"Financial institutions which had failed to do so should not be given the facility to issue credit cards," he said.
"Bank Negara must also institute guidelines on the recruitment of credit-card users and must prohibit third parties from getting involved in credit- card recruitment other than licensed banks."
All these suggestions would be forwarded to Bank Negara this week.
