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Contactless smart cards 'vital in preventing fraud'
20 Oct 2009

If the US wants to avoid an increase in payment fraud and the financial loss that goes with it, policymakers "must be willing and able to make investments in emerging technologies".

That is the view of Smart Card Alliance executive director Randy Vanderhoof, who claims that contactless smart card technology is one method that can be used to halt predicted growth in fraud.

His comments come after the alliance published a new white paper today (October 20th), which investigates ways in which financial crime can be slowed. Last week, the organisation's Contactless and Mobile Payments Council revealed that studies such as this will be produced over the coming months.

Dubbed Fraud in the US Payments Industry: Fraud Mitigation and Prevention Measures in Use and Chip Card Technology Impact on Fraud, the latest report includes a discussion on how new technologies and processes help to mitigate card-based fraud losses.

Mr Vanderhoof added: "Use of the contactless chip card technology already in place will set the stage for eventually moving to globally-interoperable EMV cards and terminals."

Once this happens, he explained, US-issued payment cards will be able to benefit from a "globally interoperable payments infrastructure" that has similar security levels to that which is enjoyed by the rest of the world.