In an article entitled: "Bright Idea Cuts ATM Fraud" the New Zealand Herald reports that Bank of New Zealand has patented an invention created by Michael Turner, one of it's employees.  Mr. Turner's system is known as "liquid encryption number" which the bank revealed yesterday it has patented and hopes to sell internationally..



According to Finextra, "the system has helped BNZ cut the number of fraudulent transactions from cloned cards by 50%, prompting its Australian parent to take it up."



The "liquid encryption number" dynamically rewrites a card's magstripe data after each usage...





HOW IT WORKS
* Liquid encryption number technology means that the data - a series of numbers - stored on a card keeps changing.
* The data on a card's strip is rewritten each time the card is placed in an ATM.
* By the time criminals try to use the card, its data will have changed so it cannot be used in fraudulent transactions.


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Posted by John B. Frank Thursday, June 24, 2010

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