After looking into Massive Credit Card Frauds in Online Transactions happening Abroad for Cards Issued in India, CardBhai – Credit Advisory floated the idea of 2nd Factor of Authentication for Card Not Present Transactions such as Online Shopping. Earlier in March, the RBI mandated Credit Card Issuing companies to upgrade their systems for Additional Authentication for Online Transactions. HDFC Bank went a step ahead and gave consumers a choice of One Time Password sent to their Mobile which could used to complete the Online Transaction.
Now for the second factor of authentication banks have come up with a cool new solution of using Telecom Infrastructure and use the famous “Missed Call” means as authentication. Customer has to call from the Number Registered with the Bank to get his transaction processed. When the Call is not completed how can it be used as 2nd Factor of Authentication because nowhere does it get recorded when the call goes unanswered. True, but what Banks have done is, put to use Telecom Technology with Tamper Proof Boxes where all Missed Call are identified by Caller Line Identification technology and Processed for Authentication of customers Transaction.
Missed Call is cost effective solution and it can happen from anywhere in the world and the customer incurs no cost as it will not be answered but just identified that he is the one transacting. This also saves the Bank from sending SMS messages which are not 100% reliable due to Do Not Call Registry Restrictions in India.
Missed Call Authentication is also used in India for Online Banking Transactions and by Insurance companies to send policy information to customer. Can Missed Call Technology be exported to the Rest of the World ?