Pocket Systems, an e-commerce security company, has launched PocketKey, a new system designed to tackle the problem of e-commerce credit card theft for consumers, merchants and banks.
According to the company, 85 per cent of Americans in wealthier households now consider card theft from a merchant as their biggest crime risk and 27 per cent of Americans have experienced card theft in the past year. By 2018, losses to banks and merchants from credit card fraud are projected to reach $19 billion.
PocketKey is a small, lightweight digital device that enables true end-to-end encryption for e-commerce (card not present) payments. The device tackles the possibility of fraud by encrypting payments before they enter your computer or smartphone, and keeping them encrypted as they pass through merchants, gateways and card networks, until they reach the card issuing bank.
PocketKey replaces the 16-digit number found on credit and debit cards with a one-time use 75-digit number and encodes information specific to the transaction within the payment itself. Even if the payment number is stolen, the company says it will be completely worthless to thieves because it is bound to a single merchant and unique transaction or customer account.
For online payments, the device plugs into a computer through a USB port or into a mobile device through the headphone jack. The company actually says that using the device will speed up online and mobile transactions for the consumer. When you plug in the device, it will enter your encrypted payment automatically and securely auto-fill every required field for billing and shipping.
“Banks and merchants are losing $10billion annually to fraud, which is predicted to rise to $19billion per year by 2018. Most people have accepted this as an unavoidable reality. But just imagine how much better off we would all be if we could shut the thieves down. Forever,” said David Marsyla, Founder and CEO of Pocket Systems, Inc.
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