Tan Kin Lian - Perspectives Stop thieves from using stolen credit cards
Thieves use stolen credit cards to make purchases, usually of large sums. 

Many merchants have installed 3D secure protocol (3DS) on their point of sale devices to verify the card holder. The card user has to enter a verification PIN at the point of sale. As this PIN is known only to the card holder, it stops the thief from using the card. 

An alternative method is for the card issuer to send an OTP  by SMS to the card holder to input the OTP to approve the payment.

If the merchant does not adopt 3DS, this verification is not carried out. 

Many thieves use non 3DS merchants to make the fraudulent transactions.

I suggest that the card issuer adopt an additional step for transactions that were not verified by 3DS.

The card issuer should send a notification for the card holder to approve the transaction using an issuer provided app on his registered phone. 

If the card holder is the person using the card, he will be on standby to approve the transaction. This is convenient and secure. 

If a thief uses a stolen card to make the transaction, he does not have the registered phone to approve the transaction. The transaction will fail.

The issuer can implement this non 3DS verification with minimal work on their system. 

Tan Kin Lian

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