Mobile Payment Systems

BY NICK FELKER

Credit Card Fraud

• Affects about 13 million Americans each year
• $16 billion in fraud last year
• $100 for every credit card owner in the US

Credit Card

• Magnetic strip contains identifying information

How Credit Cards Work

Current Problems

• Card data can easily be stolen with skimmers
• Hidden cameras can record PIN entries
• Card security codes are easy to obtain
• Half of global credit card fraud is in US

Chip Cards

• Microchips instead of magnetic stripes
• New Rowan student IDs have microchips
• Allows for contactless payments
• Encrypted data

Online Payment Systems

• Merchant is a web server from a company
• Chip card systems don't work
• Username / password systems are not secure

Biometric Authentication

• FIDO Alliance (Fast ID Online) formed in 2012
• Fingerprints are unique to each person
• Infrared cameras can identity your face
• Built-in to mobile platforms

Conclusion

• Current credit card system
• Next-gen payment system
• User authentication

Questions?

Bibliography

• https://www.javelinstrategy.com/uploads/web_brochure/1502.F_2015IdentityFraudReportBrochure.pdf
• http://blogs.wsj.com/corporate-intelligence/2014/02/06/october-2015-the-end-of-the-swipe-and-sign-credit-card/
• http://money.howstuffworks.com/personal-finance/debt-management/credit-card.htm
• https://web.stanford.edu/class/cs101/security-6-emv.html
• http://www.paragonedge.com/news/industry-insights/comparing-chip-card-and-magnetic-stripe-card-transaction-flows.html
• http://www.smartcardalliance.org/slideshows-20120409/

Chip Card Transactions

• Single-use encrypted payment blob
•  

Mobile Payments

• Mobile phones act as digital wallets
• Contactless payment using NFC (Near Field Communication)
• Uses phone as second authentication

Not Very Secure

• @NeedADebitCard