Gemalto Opens a Bag of Chips for HSBC in Asia
Bank Technology News | January, 2010
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FeedbackHSBC is expanding its use of contactless chips over magnetic stripes as its weapon of choice in the global fraud war, hiring digital security firm Gemalto to supply an EMV migration service across 19 markets in the Asia Pacific region.
Gemalto’s service will cover three areas: provisioning EMV credit cards, secure personalization services, and business recovery planning services. As the threat of card fraud increases, the tech firm, which has opened local offices in the Asia Pacific region, says fraud mitigation is a key driver of EMV migration in the region, particularly given the wide use of cards for day-to-day transactions in that part of the world.
EMV is the Europay, Visa and MasterCard authentication standard, used primarily outside the U.S. to define the interaction between chip cards and chip card processing devices. The Smart Card Alliance says that in the U.S., branded contactless payment programs, similar in many ways to EMV, are being implemented to combat magnetic stripe fraud.
Chip-based EMV cards provide an array of anti-fraud measures, such as producing an authorization cryptogram with each authorization request with a value that’s always unique. Chip cards contain credentials that are encoded by the issuer, which are encrypted and cannot be accessed by outside parties—making card cloning difficult.
“Fraudsters can’t ‘listen in’ on a transaction and copy information,” says Randy Vanderhoof, executive director of the Smart Card Alliance.
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