CREDIT cards have long been a staple in the financial lives of Malaysians, but with the convenience comes a lurking menace — credit card fraud.
In 2022 alone, Malaysia recorded a staggering RM39 million in losses due to credit card fraud, highlighting the pressing need for enhanced security measures in the financial industry.
While combating fraudsters might be a constant battle, a new technological innovation promises to make it considerably harder for criminals to steal sensitive credit card data.
DYNAMIC CARD NUMBER
Enter the dynamic card number, a cutting-edge feature now available in virtual credit cards.
Leading the charge in this technology is Alliance Bank Malaysia Berhad, which has introduced the Dynamic Card Number in its Alliance Bank Visa Virtual Credit Card.
This collaboration with Visa Malaysia, CTOS Digital Berhad, Jirnexu (RinggitPlus), YTL Communications (YES), and Touch 'N' Go Digital (TNG Digital) is set to revolutionise online transactions, significantly enhancing security for credit cardholders.
"The virtual credit card is essentially a digital version of the traditional credit card. It resides on your smartphone, eliminating the need to carry a physical plastic card," Alliance Bank Malaysia Berhad group chief consumer banking officer Gan Pai Li said.
One of the key security features of the virtual credit card is its ability to generate a random 16-digit card number for each transaction.
"With the rise in scams, it's challenging to eliminate them. However, with a virtual credit card, you can create unique cards for different merchants.
"If any issues arise or your card is compromised, you can freeze it and contact the bank for resolution. Once resolved, you can reinstate your card and use it on your mobile," she said.
ADVANTAGES
The dynamic card number generates a unique 16-digit credit card number for every transaction, including e-commerce purchases and subscription services.
This innovation not only bolsters security but also caters to the diverse lifestyle needs of customers.
As part of Alliance Bank's Acceler8 strategy, this technology aims to provide faster, more personalised solutions for customers, ultimately reducing their exposure to fraud risks, identity theft and financial scams.
Furthermore, it contributes positively to the environment by reducing the production of plastic credit cards and lowering the credit card footprint in online channels.
Gan also highlighted the convenience of creating multiple cards for various vendors, allowing customers to allocate different numbers for each merchant.
"For me, I have one card that I assign to many vendors with different numbers. These are for vendors I frequently engage with," she said.
Another significant advantage of virtual credit cards is the ease of tracking transactions.
REAL-TIME MONITORING
Unlike traditional credit cards, which require contacting a call centre and waiting for a new card to be issued in the event of compromise, virtual cards offer real-time transaction monitoring.
"Customers can freeze and unfreeze their cards with a simple app, instantly securing their funds.
"Besides that, customers also have the flexibility to assign dedicated dynamic card numbers and set limits for specific subscription services, simplifying transaction management via mobile phones," said Gan.
"In line with Alliance Bank's customer-centric approach, we continuously innovate and enhance our digital solutions to meet our customers' evolving banking needs.
"The new feature on the Alliance Bank Visa Virtual Credit Card provides our customers with greater peace of mind by offering a more secure payment option, addressing concerns about credit card data breaches when transacting online," she added.
With Malaysia recording 154 data breaches per 100 people in 2022, according to Surfshark, the introduction of dynamic card numbers aims to provide a more personalised and secure payment method, particularly among young professionals.
MAKING IT DIFFICULT FOR FRAUDSTERS
Commenting on credit card fraud cases involving Alliance Bank customers, Gan explained the various ways hackers obtain credit card details, including phishing attacks and card skimming.
"The credit card today relies on single-factor authentication, making it vulnerable.
"However, through virtual credit cards, customers can exercise greater control. They can set low spending limits, even as low as RM50, rendering the stolen card information useless," she said.
Additionally, customers can set cards to automatically cancel after a single use at unfamiliar stores, adding an extra layer of security. Despite having multiple virtual cards, customers receive a single bill, simplifying the payment process.
The fully online application process for virtual credit cards is swift and straightforward, with digital submission of supporting documents.
Successful applicants receive notifications through a push notification system.
