With hacks, stolen credit card data, and identify fraud constantly on the rise, some credit card companies are looking into how to better beef up security. MasterCard announced Tuesday that it has partnered with mobile technology company Syniverse to make it more difficult for unauthorized users to buy goods with nabbed credit cards. While working to heighten credit card security is nothing new, MasterCard’s most recent plan is a bit different because it involves users’ smartphone geolocation while they’re traveling abroad.
Announced in a joint press release on the Mastercard site, the global payments company is partnering with a mobile solutions company called Syniverse to develop a new solution that will reduce fraudulent use of credit cards. Conceptually, when you swipe your credit card at a store, the connected smartphone application would verify your geolocation data and approve the purchase. Basically, someone that was attempting to use your card anywhere else in the world would be out of luck unless they also has access to your smartphone as well. In addition to reducing fraud, this link between a credit card and a smartphone would allow people to travel freely into other countries and use the card without any declined transactions. Of course, smartphone owners would need to have some sort of data plan when traveling.
