7/18/16, 1:08 PMHow SmartMetric’s Fingerprint Technology Can Prevent Billions in Credit Card Fraud Loss | GOBankingRates

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How SmartMetric’s Fingerprint Technology Can PreventBillions in Credit Card Fraud LossHere's how the miniaturized !ngerprint recognition technology can helpend credit card fraud.

By Terence Loose (https://www.gobankingrates.com/author/terenceloose/) / July 16, 2016

Fingerprint I.D. isn’t just for smartphones any longer. A new, ultra-thin version of the Europay, MasterCard andVisa technology has been developed and will be embedded in credit cards and debit cards(https://www.gobankingrates.com/checking-accounts/5-times-to-use-debit-card-instead-credit-card/) soon. Credit cardfraud is on the rise and a"ects nearly 32 million Americans annually; EMV aims to combat this problem as well as I.D. theft.

Here are the details on what this new technology means for you and your wallet.

Read: 7 Ways to Protect Yourself From Credit Card Fraud at Gas Stations (https://www.gobankingrates.com/credit-cards/5-tried-true-strategies-protecting-credit-card-gas-pump/)

Credit Card Fraud Costs Americans $8 Billion Each YearCredit card fraud has increased for the fourth year in a row; this type of crime rose to $16.3 billion worldwide in 2014,according to a 2015 Nilson Report, the top trade newsletter covering the card and mobile payment industries. Nearly 8 billionof that fraud was committed against U.S. cardholders, despite the fact that Americans accounted for less than 22 percent ofthe volume. In other words, fraud is worst against Americans.

Credit card theft can be as simple as a thief digging through your trash to !nd credit card statements with your accountnumber, or as sophisticated as high-tech hackers attacking a company that has your credit card on !le. Other forms of creditcard fraud include lost or stolen credit cards being used before they are reported, and skimming, in which a fraudulent cardskimmer is passed o" as a regular payment device that unknowing victims use to swipe their card — and the skimmerthen saves and stores card information to be used fraudulently.

Perhaps the boldest instances of credit card fraud are those committed by criminals who call or email with o"ers of free tripsor vacation packages. Unknowing victims are tricked into providing their credit card(https://www.gobankingrates.com/credit-cards/what-type-credit-card-should-get/) information in order to secure a falsereservation — and enabling the criminals to use that information to make fraudulent charges.

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7/18/16, 1:08 PMHow SmartMetric’s Fingerprint Technology Can Prevent Billions in Credit Card Fraud Loss | GOBankingRates

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Crimes like these are why !ghting credit card fraud is like !ghting a multi-front war; and in many respects, it’s a war thepayments industry is currently losing, said Chaya Hendrick, president and CEO of SmartMetric, a developer of biometricsecurity devices like its new !ngerprint veri!cation for credit cards. “We just saw projections that credit card fraud willexceed $35 billion in 2020,” Hendrick said. Hendrick believes the SmartMetric technology could help bring that number down.

How SmartMetric’s Fingerprint Technology Could Help PreventCredit Card FraudHere’s how SmartMetric’s biometric technology works in a credit or ATM card: A tiny scanner will be embedded inside thecard. When you get your card there will be a little bit of plastic over the scanner. You peel o" the plastic and swipe your!nger — you can choose which !nger or thumb you’d like to use — three times over the sensor, forever embedding your!ngerprint inside the card. “Nobody else will be able to use it,” said Hendrick.

Then, when you want to use an ATM or make a purchase, you pull your card out and swipe your !nger across the sensor toactivate the card for a transaction. Hendrick said this does not replace the new EMV chip technology, but adds a layer of I.D.theft (https://www.gobankingrates.com/personal-!nance/5-signs-youre-victim-identity-theft/) protection for credit cardholders.

“It means that your credit card is a dead piece of plastic until it’s activated by your biometrics,” said Hendrick. Using theSmartMetric technology doesn’t require any changes in retailers’ equipment.

Fingerprint scanners have been around for a while, but until now, the components have not been small enough to work insidea credit card, said Hendrick. Because SmartMetric could not use any o"-the-shelf components, it took 10 years to miniaturizeand perfect the technology, Hendrick said.

The SmartMetric CEO said her company is currently in talks with some of the world’s biggest credit card-issuing banks and!nancial institutions. And although con!dentiality agreements bar her from giving details, Hendrick said that consumerscould see these credit cards rolling out in the next six months or even sooner.

Although this technology will not stop all credit card and ATM card fraud, Hendrick said she expects it to have a huge impactand be another battle won in the war against credit card fraudsters.

“It helps the consumer in knowing that if their card is stolen, no one will be able to use it,” Hendrick said. “And it also will stopthe unauthorized swiping of your card by nefarious people.”

Read: Every Type of Check Fraud You Have to Worry About (https://www.gobankingrates.com/checking-accounts/your-checkbook-identity-theft-time-bomb-waiting-o!/)

How SmartMetric WorksWatch this video to see how SmartMetric technology works and how it can protect your !nances.

The Bottom Line and What You Can Do NowYou might not have experienced it, but credit card fraud is a real and growing problem. And although SmartMetric’sbiometric solution might be a strong weapon in the !ght against fraudulent credit card use, it won’t completely stop it. Hereare a few things you can do now to ensure you’re not one of the millions of Americans who fall victim to credit card fraudevery year:

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Never give your credit card number to anyone who emails or calls you if you did not instigate the contact.Don’t carry your credit cards in your wallet or purse. This can minimize your losses if someone steals your wallet orpurse.Bring only the card you need for a particular outing.Draw a line through any blank spaces above the total on a receipt.Save your receipts (https://www.gobankingrates.com/personal-!nance/deadline-countdown-receipts-save/) so you cancompare them with your statement.Report any questionable charges to the card issuer.Notify your card issuer if you will be traveling, along with where you plan to visit.

Combined with a little common sense, taking these precautions can reduce your risk for fraud. But if your card is lost orstolen, report it immediately. By law, you will not be responsible for any fraudulent charges made after you report your cardlost or stolen. Remember, until your !ngerprint can make your credit card a dead piece of plastic when out of your hands,precaution might be your best defense.

Related: How I Bounced Back From Credit Card Fraud (https://www.gobankingrates.com/credit-cards/how-bounced-back-credit-card-fraud/)

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