Consumers will soon be able to lock their debit cards thanks to a new technology that provides more security to card users.
Texas-based Malauzai Software is the first to offer an app that locks debit cards when not in use—a feature that users find to be interesting and beneficial.
Last year, the Centier Bank in Northwest Indiana started offering Malauzai’s on/off security feature to consumers through its mobile app.
The bank said the number of customers using the app had increased following Target’s announcement of a breach on millions of its customers’ debit and credit cards.
According to Nessa Feddis, who works with the American Bankers Association, the new service provides customers with more security and piece of mind.
“We’re all familiar with the bank systems that identify suspicious activity, but this is one that actually stops the fraud before the transaction occurs,” Feddis said.
The new technology has caught the interest of Chicago-based BMO Harris Bank and MB Financial, and they are now planning to offer the service soon.
Ondot also plans to launch similar technology through banks and credit unions in the US in September.
“In some of the test markets where the product has been deployed for over 12 months. They’ve seen reduction in fraud by as much as 60 percent,” said Ondot founder Rachna Ahlawat.
This is a step in expanding financial security and placing it firmly in the hands of the consumers, a welcome step following increasing reports of security breaches and card fraud.