A new computer chip and biometric fingerprint sensor containing a dynamic account numbering system has been introduced by Vaultid LLC. With this new chip, cardholders can be better protected from identity theft.
The Vaultid Card is only capable of working if the owner of the card passes his or her finger over the sensor. After doing so, the microchip within the card helps to confirm the identity of the card holder. Once the identity of the user is confirmed, the credit card displays an account number that is unique to that transaction. This number is then transmitted through a secure merchant network with the help of radio frequency identification technology. The transaction cannot be completed until this number has been generated and transmitted. With the current program, VaultID can create up to 10,000 different account numbers before it ever has to repeat a number.
Essentially, a credit card with the Vaultid technology is useless until it has been properly authenticated. In addition, it does not store any of the consumers personal information. Since the number created is unique and not used again for that consumer, an identity thief that steals the information will find that it is completely useless.
The company had announced that it has started testing of the technology in June with a company by the name of EchoSat Communication Group that is located in Lexington, KY. In addition, the device has many other potential uses in addition to credit cards, including use in mobile devices. With the help of the technology, consumers can securely make payments with their cell phones and can even make mobile to mobile payments to people that may not have credit card processing capabilities, such as when making a purchase at a garage sale.