The recent hack attacks on US banks, from places like Eastern Europe, has let many doubt the security systems that banks have in place and worry about the safety of sensitive data and electronic payments. Ellen Richey, EVP & chief enterprise risk officer at Visa Inc (NYSE:V) has said in a video segment on CNBC that at the moment consumers should have no fear for their data because the high security system that Visa Inc (NYSE:V) has put in place is hard to break.
“[…] In spite of the increasing sophistication and even the increasing frequency of these cyber-attacks in recent years, we have maintained our fraud rates at the very low level of six basis points, not six percent, six cents per every hundred dollars transacted […],” said Richey.
However, the consumers might not get their money stolen, but once their data is in the hackers’ hands, the first thing one has to do is to change their payment information with many retailers, which could be irritating. Richey has explained that the new security technology revealed by Visa Inc (NYSE:V) is supposed to do just that, to limit the hassle. This can be done by detecting the fraudster not after the transaction has been done but before that.
The new technology, which for starters will be available at gas stations, is going to analyze hundreds of transactions made in the past and then try to match them to the present one. Should there arise any doubts, Richey suggests, the cardholder will be asked to complete the transaction personally.
Visa Inc (NYSE:V) is a $133 billion market cap company that is currently suffering from dim business prospects in Russia, as geopolitical risks are rising. However, the company is boosting its business elsewhere and seeking new ways of payment, including mobile-related.