NACHA Tries To Combat OnlineFraud
HERNDON, Va. - (03/16/06) NACHAthe ElectronicPayments Associationannounced Wednesday it is launching apilot to test transactions in which consumers would beauthenticated by their own credit unions and banks. In the pilot, aconsumer would choose to complete an online transaction at a website using this authentication and payment method. The consumerwould then be re-directed via a secure network to her financialinstitutions online banking web site, where she would log inusing existing log-in procedures. Once securely within thefinancial institutions web site, the consumer would confirmthe details of the transaction and authorize payment. Because theconsumer would authorize payment via her own financial institution,she does not provide her financial account information to thebusiness or a third-party; it remains private between her and herfinancial institution. Because the business does not receive andstore her financial account information, it does not have theresponsibility of securing the information from mishandling, misuseor theft. Recent surveys show that a minority of businesses complywith Visa and MasterCard requirements to destroy all personalconsumer information after transactions are completed, leaving theinformation ripe for cyber-thieves.