MasterCard to authenticate online transactions by phone

MasterCard adds one-time passwords to improve security

In the face of mounting threats from hackers, MasterCard will use mobile phones to improve security for online transactions, the company said on Monday.

The added layer of security comes from a one-time password that the user is asked to enter when approving a transaction. The password is either sent via an SMS (Short Message Service) or created by an application that runs on a smartphone or a phone that supports Java.

The goal is to improve users' protection against phishing and man in the middle attacks, which are growing problems in the e-banking and e-commerce world, according to MasterCard.

There is no fool-proof way to protect against these attacks, but the fact that the new passwords can be used only once limits the potential damage they could inflict, according to Jan Lundequist, senior business leader and head of chip product management at MasterCard.

The first services to use the improved security will become available during the first half of next year, Lundequist said.

MasterCard isn't building these systems itself, but will work with a number of partners. It has so far signed deals with three vendors, but isn't ready to name them, according to Lundequist.

The use of mobile phones for payments and other related services is slowly gaining ground all over the world. On Monday, MasterCard also announced the Mobile Payments Gateway.

It will, for example, let users pay, send and receive money and keep track of activities via alerts on the their mobile phone, according to MasterCard said.

Services based on the new platform will first be offered in Brazil, where the card company is working with Itaú Unibanco, Redecard and mobile network operator Vivo -- which has 48 million customers, MasterCard said.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags mastercardauthentication

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?