New Technology That May Reduce ID Theft

Move over Visa and MasterCard, there just might be a new card in town. The Miri Card, a not yet on the market product of start-up Miri Systems, might just offer some much needed relief to the identity theft crisis that is claiming upwards of nine million victims each year.

Last month, the largest case of identity theft known to date was reported when 11 people were indicted for stealing over 40 million credit card numbers. This news put consumers in a panic and positioned Miri Systems for what might be the opportunity of a lifetime. Although many existing credit cards now come with built in or optional security features to help protect against identity theft, the Miri Card promises something that none of the others do—the ability to mask your real account number from merchants and thieves during every purchase without any extra effort.

What the Miri Card Does

Right now, Miri Systems is seeking to work with major banks and credit issuers across the United States and in Europe in hopes that every credit card will quickly become a Miri Card. Here’s how a Miri Card would work:

You walk into your favorite store and select your purchases. When you approach the counter and swipe your card to pay, the card automatically generates a single use account number exclusively for that purchase. That information is seen by the merchant and stored in their system. If their system is ever compromised, your real account number is not compromised and identity thieves only have access to a “dead” account number that expired after your single purchase. But that’s not all.

The Miri Card is also encrypted with special information that allows law enforcement officials to track down would be thieves who may try to defraud you of your hard earned money or your golden credit. All of this is done without any extra effort on behalf of the cardholder or the merchant. According to the company, the Miri Card can be used online and in stores just like any regular credit card.

Similar Systems Currently In Use

Right now, Bank of America credit card holders can opt to use the “Shop Safe” feature for all online purchases (although it cannot yet be used in stores and must be initiated before making each online purchase). Card members simply log into their accounts online and obtain an account number (complete with expiration date and three-digit security code) and then submit that information in place of their real account details when prompted for payment by online retailers. Those who use it love it and wish they could use it in stores and without prompting. If the Miri Card is adopted, they will be able to do just that.

How it Protects You

The fewer people or computers that see your account number, the safer your account number really is. The Miri Card, if it really works the way Miri Systems claims it does, could offer unique protection against some very specific forms of identity theft.

Hacking: Computer savvy identity thieves have figured out how to break into the payment systems of certain online merchants in order to steal live credit or debit card numbers and either use them themselves or sell them on the black market. The beauty of the Miri Card and the single use number is that hackers won’t ever have access to real account numbers because merchants won’t ever have access to real account numbers and customers cannot be defrauded. If someone does try to defraud you in this way, law enforcement officials will have a better chance of tracking him or her down and putting an end to that thief’s crime spree.

Skimming: If your waiter or waitress turns out to be an identity thief, or a crooked person employed by an identity thief, and he or she swipes your card in a skimmer in order to save your credit card number and sell it, that person will soon find out that he or she has nothing but a dead number.

War Driving: This technique was the one used by the crime ring that stole more than 40 million credit and debit card numbers. It involves using wireless computers to search out unencrypted servers on other wireless systems. Having a Miri Card eliminates the worry that your favorite vendors and retailers might be using unencrypted servers to transmit and store your credit card information. Even if they are, you aren’t at risk since thieves would receive nothing but a dead end account number.

How to Get a Miri Card

Because Miri Systems is still a relatively new company, offering relatively new technology, they haven’t yet landed any deals with big name banks. But you can try to start a grassroots effort and contact your local bank or credit card issuer and ask if they have any plans to employ Miri Systems technology in the future. If they sound interested, you can refer them to www.mirisystems.com for more information. In the meantime, you still need to protect yourself from identity theft in several old fashioned ways.