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 CSO newsletter!

Error: Please check your email address.

Tags mastercardauthentication

More about etworkGateway

Show Comments

Featured Whitepapers

Editor's Recommendations

Solution Centres

Stories by Mikael Ricknäs

Latest Videos

  • 150x50

    CSO Webinar: Will your data protection strategy be enough when disaster strikes?

    Speakers: - Paul O’Connor, Engagement leader - Performance Audit Group, Victorian Auditor-General’s Office (VAGO) - Nigel Phair, Managing Director, Centre for Internet Safety - Joshua Stenhouse, Technical Evangelist, Zerto - Anthony Caruana, CSO MC & Moderator

    Play Video

  • 150x50

    CSO Webinar: The Human Factor - Your people are your biggest security weakness

    ​Speakers: David Lacey, Researcher and former CISO Royal Mail David Turner - Global Risk Management Expert Mark Guntrip - Group Manager, Email Protection, Proofpoint

    Play Video

  • 150x50

    CSO Webinar: Current ransomware defences are failing – but machine learning can drive a more proactive solution

    Speakers • Ty Miller, Director, Threat Intelligence • Mark Gregory, Leader, Network Engineering Research Group, RMIT • Jeff Lanza, Retired FBI Agent (USA) • Andy Solterbeck, VP Asia Pacific, Cylance • David Braue, CSO MC/Moderator What to expect: ​Hear from industry experts on the local and global ransomware threat landscape. Explore a new approach to dealing with ransomware using machine-learning techniques and by thinking about the problem in a fundamentally different way. Apply techniques for gathering insight into ransomware behaviour and find out what elements must go into a truly effective ransomware defence. Get a first-hand look at how ransomware actually works in practice, and how machine-learning techniques can pick up on its activities long before your employees do.

    Play Video

  • 150x50

    CSO Webinar: Get real about metadata to avoid a false sense of security

    Speakers: • Anthony Caruana – CSO MC and moderator • Ian Farquhar, Worldwide Virtual Security Team Lead, Gigamon • John Lindsay, Former CTO, iiNet • Skeeve Stevens, Futurist, Future Sumo • David Vaile - Vice chair of APF, Co-Convenor of the Cyberspace Law And Policy Community, UNSW Law Faculty This webinar covers: - A 101 on metadata - what it is and how to use it - Insight into a typical attack, what happens and what we would find when looking into the metadata - How to collect metadata, use this to detect attacks and get greater insight into how you can use this to protect your organisation - Learn how much raw data and metadata to retain and how long for - Get a reality check on how you're using your metadata and if this is enough to secure your organisation

    Play Video

  • 150x50

    CSO Webinar: How banking trojans work and how you can stop them

    CSO Webinar: How banking trojans work and how you can stop them Featuring: • John Baird, Director of Global Technology Production, Deutsche Bank • Samantha Macleod, GM Cyber Security, ME Bank • Sherrod DeGrippo, Director of Emerging Threats, Proofpoint (USA)

    Play Video

More videos

Blog Posts

Market Place