Mobile phones tackle card fraud

Ingenico said its service would combat credit card fraud

A Scottish-based company is developing mobile phone technology to help banks across the UK combat credit card fraud.

Ingenico's Malcolm Bushell said its service would protect bank customers from fraudulent "card-not-present" transactions.

Customers would receive text messages asking whether they wished to complete the purchase before money is debited from their account.

A company spokesman said it hoped banks would give the project "the thumbs up".

SecurePay will be packaged with Ingenico's payment and transaction systems which include PIN pads and terminals.

The scheme would work by linking a person's credit card number with their mobile phone.

Mobile phones are now a part of everyday life and as such consumers will be using a technology that is already very familiar Malcolm Bushell Ingenico

When a card is presented for payment a person would receive a message on their mobile authorising the transaction.

A spokesman for Ingenico, which is based in Dalgety Bay, Fife, told BBC Scotland's news website it hoped the scheme would be operational within a year.

"We're confident banks will give it the thumbs up," he added.

Mr Bushell said: "Fraudsters are having their actions significantly curtailed by Chip and PIN technology and as such they are now starting to focus their energies on card-not-present fraud.

"This type of fraud is a worldwide problem and it is growing exponentially. By enhancing our provision of secure payment solutions with the incorporation of securePay we are assisting our customers to remain at the forefront of efforts to combat all types of card fraud.

"Mobile phones are now a part of everyday life and as such consumers will be using a technology that is already very familiar and the effect on their current transactions in terms of time will be imperceptible."

Card fraud specialist and solutions provider Telsecure said it was confident the scheme could be a success.