Tan Kin Lian - Perspectives Protocol to stop credit card fraud
I have written to the government to suggest that card issuers be required to adopt the following protocol to stop a stolen credit card from being used to make a payment:

a) if the merchant has implemented the 3D Secure protocol on its point of sale, ask the card user to key in the registered PIN. 

b) otherwise, the card issuer should notify the card holder through the issuer supplied app to approve the payment.

At present, most card issuers do not implement step (b). This allows a thief to make a fraudulent transaction with a merchant that does not have 3D secure protocol.

In Singapore, the card issuer did not implement the verification by PIN under step (a). This is implemented in other countries, including Malaysia and Indonesia. Singapore should adopt this protocol. 

The thief can also use the details of the card to make a fraudulent transaction with an online merchant that does not have 3D secure protocol.

For transactions below say $200, the card holder may opt out of the verification at step (a) or (b).
The issuer based verification is convenient as the card holder can easily approve the payment with a fingerprint on the app.

This protocol will stop a thief from using a stolen credit card from being used to make a fraudulent transaction.

Tan Kin Lian
 

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