Using someone else’s credit card without the owner’s knowledge would soon become ineffective if mConfirm finds large-scale application among banks worldwide. Security Identity Systems, an Israeli company has invented a new technology called mConfirm that has already been accepted by US banks to prevent credit card frauds. To prevent credit card fraud the owner of the credit card requires a mobile phone with GPS and the owner should keep his or her mobile phone handy while carrying out credit card transactions. While the credit card is being swiped, mConfirm tracks whether the credit card and its owner’s mobile phone are in the same location. If their locations do not match, then a warning signal of possible credit card fraud is triggered that requests the merchant to ask for further identification from the customer. Without additional identification, the card can be rejected, preventing the thief from walking away with the purchase.
mConfirm works through a three-tiered analysis process. The First is location-based analysis that analysis the card’s locations and movements, a profile of the locations and behavior of the cardholder based on locations and profiles. Second is the cellular-based authentication that helps verify the cardholder’s identity by the presence of the mobile phone. Last is cross-card analysis that includes identification of counterfeit cards, identification of points at which the cards were counterfeited and locations where the counterfeited cards were used.
