Feeds

Cahoot launches disposable credit card

Seeking safer online shopping

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Abbey National's online banking arm, Cahoot, is launching an Internet-based 'disposable' credit card, dubbed webcard, to reduce online fraud for online.

The idea is simple: people with Cahoot debit or credit cards enter their details into the bank's website and it generates a unique 16-digit ID number each time they wish to make an online purchase. As soon as the transaction is concluded, the number is rendered invalid, meaning your actual card details are never given out. (Refunds will work like normal though, as they are linked to that specific transaction.)

Users are also able to specify a maximum value for a transaction, thereby preventing your account being overcharged for whatever reason. The best bit is that users are able to use the service to shop with any retailer, rather than just partners signed up with Cahoot. It can even be used to purchase goods over the phone, unless of course the seller requires a credit card impression or swipe on delivery or collection.

The technology was developed by Orbiscom, which it flogs to companies around the world. Cahoot is its first UK-based customer.

A year ago, Securicor announced a service that would allow shoppers to buy online without passing on their card details, but it's a lot less flexible than webcard as customers are limited to shopping with retailers signed up on Securicor's online mall.

American Express launched a similar service in October last year for the US market called Private Payments.

The danger is real; online retailers don't have many means to check card details and they are often caught out exposing their existing customers details on an unsecured website, such as Amazon subsidiary Bibliofind. Cahoot estimates that about 250,000 people have been victims of online fraud.

Last week, a gang of five were jailed for conspiring to defraud online banks by making multiple bogus credit card applications. The gang targeted Cahoot, along with five other banks, in its scheme. ®

Related Stories

Online bank fraudsters jailed for eight years
Securicor's fraud prevention scheme
Compaq site exposes customer details
And so does official-merchandise.co.uk
American Express offers temporary CC numbers for the Web

Related Link

More information about Orbiscom's product

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.