Feeds

Cahoot launches disposable credit card

Seeking safer online shopping

  • alert
  • submit to reddit

Mobile application security vulnerability report

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

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.