Mastercard Devising Plan To Authenticate Online Transactions By Mobile Phone
By: John Vinson
In the online world, there are few places one feels as vulnerable than when conducting an online transaction. Inputting your information leads to the feeling of uncertainty, not knowing who is privy to the information you’re entering. Security measures have no doubt improved throughout the years, but still have room for improvement. MasterCard hopes to be part of the evolution, and doing so through mobile technology.
The company announced on Monday, a security measure which would use mobile phones as a means for making online transactions safer. The new measure would send users through either SMS or a mobile app, a one time password that would have to be entered to complete a transaction.
Mastercard stated that this new security measure is being put into place as the threat of hackers continues to rise. If used correctly, Mastercard believes this password safeguard will help protect users against phishing scams. This security jackal acts as a middle man and has the potential to hack vital information from online purchasers. Most of the time, traditional security services prevent phishing, but as the scams become more advanced, so do the safeguards.
Unfortunately, even with this new protection, online security isn’t guaranteed. The password system has already been circumvented in one case. Of course, this is a lone instance and shouldn’t be seen as a trend. However, it does show that no security measure is impenetrable.
It has not been announced which sites or services will be the first to utilize this enhanced security measure. It should be noted that Mastercard isn’t working on this alone, and has partnered with a few vendors to get the ball rolling. Again though, Mastercard has stayed silent as to who the partners are. However, we do know that we can expect to see the service released during the first half of 2010.
Mobile phones have increased in usage for purchasing items online. MasterCard has implemented a service in Brazil which allows users to pay, send/receive, and log all activities through their mobile phones. It has not been announced if the US will enjoy this convenience in the future, however, with the increase in mobile phone usage in America it seems likely.
