Tim Bass
08-20-2008 12:16 AM
In
The Magical ATM Card and SMS Message in Thailand*we talked about booking flights and securely paying using a SMS PayCode and ATM transfer, avoiding the possibility of on-line credit card fraud; and in
Keyloggers: Why Banks Need Two-Factor Authentication*I described how
KBank uses SMS-based one-time-passwords (OTP) to authenticate transactions.***
In addition to the above services, KBank*offers a service that permits users to receive an SMS message that details any change in account balance and/or point-of-sale (POS) transaction with your debit card.** I really like this service and the feeling of security knowing when, where and by how much my balance changes or my debit card is used in a transaction.*** The KBank POS SMS notification is so fast that when I present my card to a merchant I normally receive an SMS message detailing the transaction before the merchant returns for my signature.* (There is an unfortunate lag in the balance change notification that can run minutes to hours behind real-time, but the POS VISA debit card notification is real-time).
As the story goes, *I should have been using my KBank card and account a few weeks ago and not my*US-based VISA debit dard.* Why?
My*US-based VISA debit card was cloned sometime on or before August 8th.** I am really careful with this card, so I*was surprised the magnetic strip was cloned at a POS merchant.** The fraudster made 7 fraudulent transactions beginning on August 8th*for a total of around $2500 USD, mostly on August 11th, before I discovered the fraudulent transactions viewing my account on-line.
This would not have happened with KBank SMS-based transaction notification services.
The first transaction with my cloned VISA debit card was less than $50 USD (I assume the fraudster was “testing the water”).** If I was using my KBank card, I would have received an immediate SMS message detailing a POS transaction in Bangkok when I was physically far away from Bangkok in Chiang Mai.** I could have immediately called the bank (or logged in)*and blocked the debit card, limiting potential losses to the bank or the merchant to one fraudulent transaction, not seven.
In addition, KBank offers what they call a Web-Shopping VISA card, where you can go into*your on-line account (verified by SMS OTP as mentioned) and request a VISA debit card number (with expiration date, CCV etc).** You set the limit from 0 to 500,000 THB (Thai Baht) per day; and you can login to your account and change this anytime (authenticating your transaction with another SMS-based OTP). You can also block or cancel this number anytime and apply for another one.
I am amazed that in Thailand I receive much better anti-fraud prevention and detection services than with banks in the US.** I know of no bank or brokerage*in the US that offers the same quality of service and security*as KBank in Thailand.**
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