24 Jun 2010

BNZ upbeat about anti-fraud technology prospects

7:49 am on 24 June 2010

BNZ is hoping to sell new anti-credit card fraud technology that it has developed to other banks and major credit card companies.

The technology targets skimming, whereby fraudsters copy information from a credit card so that a duplicate can be made. The information is often stored and used at a later date.

BNZ has developed a system that puts a new security code on credit cards every time it is used in one of its ATMs, thus reducing the ability of fraudsters to use the stolen data.

Commercial projects manager Lachie Spence says a seven-month trial cut fraudulent credit card transactions by half, raising interest from both local and international competitors.

The inventor of the technology, the bank's fraud initiatives manager, Michael Turner, says the technology could be also be applied to Eftpos cards and used until Chip and Pin technology is fully introduced around the world, which is expected to take at least a decade.

The technology has been patented in New Zealand, and the BNZ is now applying for global patents.