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| Monday, May 27, 06:28:48am | [ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, 3, 4, 5, 6, 7, 8, 9, [10] ] |
| Subject: From stripes to chips for security.Richard Cusson KYC | |
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Author: Sep 5-George Lekakis--reporting Armand Linkens AFR |
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Date Posted: Monday, February 10, 04:41:10am From stripes to chips for security ------------------------------------------------------------ Sep 5-George Lekakis ------------------------------------------------------------ Ask smartcard expert Armand Linkens what will drive the migration from magnetic-stripe payment cards to chip-based ones and his answer is clear-cut: the powerful EMV consortium. ------------------------------------------------------------ The EMV partners - Europay, MasterCard and Visa - have spent four years establishing a standard of smartcard anti-fraud security, setting a global benchmark for the shift from the old-style magnetic stripe cards to chip-based ones. ------------------------------------------------------------ EMV specifications ensure that there is secure interoperability between chip cards and terminals around the world, regardless of the manufacturer, the financial institution or where the card is used. ------------------------------------------------------------ Although not enforceable, the EMV partners' insistence that their standard significantly reduces incidence of fraud means that card issuers and merchants need to update or risk being held liable for any fraudulent activity resulting from non-compliance with EMV. ------------------------------------------------------------ When the EMV standards are introduced into Australia, the partners will "strongly encourage" that all terminals and points of sale be EMV-compliant - at a cost to be borne by the banks and merchants. ------------------------------------------------------------ Non-compliance will see those refusing to budge to be exposed to any fraudulent activity that would otherwise be prevented by EMV compliance. ------------------------------------------------------------ It may sound far-fetched but experts believe that as more Asian countries adopt the EMV standards, the fraudulent elements there will shift to regions such as Australia where the tough new standards are yet to be introduced. ------------------------------------------------------------ "For smartcards, the question is not, are smartcards going to happen, but when. The deadline's been set," says Linkens, managing director of Belgium-based smartcard developer Proton World International. ------------------------------------------------------------ "Fraud is the key driver for this and Australia is not the most exposed country on earth but it will happen." ------------------------------------------------------------ A Proton rival, Sydney-based Keycorp, expects the EMV's gradual global rollout to hit Australia as early as 2004. ------------------------------------------------------------ And like Linkens, Keycorp's general manager, Smartcard Technologies, Richard Cusson, agrees that the new standard will greatly speed up the introduction of chip-based cards in this country. ------------------------------------------------------------ "It's not that big a lag. Australia is clearly behind Europe [in terms of smartcard uptake] but only a little bit behind Asia, whereas the US is a real slow adaptor," Mr Cusson says. "In Australia there are quite a few things moving. I really think there will be an exponential number of projects that will start happening soon." ------------------------------------------------------------ So far, most of the smartcards in use in Australia pertain to phone cards and transport ticketing systems. ------------------------------------------------------------ The full-scale financial application is yet to happen and the process is not helped by the fact that Australia's major financial institutions are not only looking to different products to satisfy their future needs, but also trying to delay the inevitable substantial cost of refiguring their terminals. Perth company ERG, which owns Proton, is also a stakeholder with Telstra and ANZ in ECard, the $100 million back-office processing venture formed two years ago to foster the take-up of smartcards in Australia. ------------------------------------------------------------ ECard had big teething problems in its first year but survived and last month was awarded the 2002 Australian Smart Card award by the Asia Pacific Smart Card Forum. ------------------------------------------------------------ But even ECard, which has about 800,000 cards under its management, is yet to make great inroads into the financial services sector, with most of its cards issued in the tourism, health and education sectors. ------------------------------------------------------------ Linkens, like many others, says the security aspect of smartcard technology no longer has to be proved. ------------------------------------------------------------ Smartcards are widely used in Europe (France is regarded as the leader in the field) and most of the technological advances focus on providing multi-application capabilities to the card issuer and keeping up to date with developments in preventing payment card fraud. ------------------------------------------------------------ Keycorp's Cusson says key challenges facing smartcard developers include increasing the capacity (storage) of the cards and minimising the required contact (for example, swiping cards against a reader instead of inserting them). ------------------------------------------------------------ [ Next Thread | Previous Thread | Next Message | Previous Message ] |