UK banks weigh up using revolutionary digitised cards to fight online fraud

UK banks are considering introducing a revolutionary new digitised card to counter a massive surge in bank card fraud.

The new card features a constantly changing digital read out on the back, instead of a permanent three-digit code on the security strip.

Digital security firm Gemalto (LSE: 0OGA.L - news) , which is developing a version of the card, claims the technology will make it virtually impossible for fraudsters to steal a customer's bank card details and use them to make purchases on the victim's account.

Gemalto spokesperson Lysa Coombs told Sky News that the new card is operated by a battery and a microchip, which renews the three-digit code every 20 minutes.

She (Munich: SOQ.MU - news) said: "It means that you physically have to have the card in your possession in order to make a purchase online or over the telephone.

"If you have simply harvested the card's details to commit fraud, you won't be able to do that as you won't have the up-to-date security code."

Gemalto senior vice president Howard Berg told Sky News that UK banks are currently assessing the new bank card technology, which is now starting to be adopted by banks in Latin America.

He said: "From the experiences we have had elsewhere outside of Europe, we are certainly seeing card holders like it for one key reason, that there's little change to the process they are currently using."

News of the development comes as shoppers across the UK gear up for Cyber Monday , traditionally the biggest online shopping day of the year.

Police are warning online shoppers to be extra careful, as many promising looking bargains on the web are simply criminal deceptions aimed at tricking people into entering sensitive bank card details, which will then be used to commit fraud.

Tony Blake, senior fraud prevention officer at the Dedicated Card and Payment Crime Unit, said the new technology could stifle an increase in online card fraud.

He said: "It is a huge growth area and criminals are always looking at new ways to make money as more of us go online to do our shopping.

"At the moment there is no one silver bullet for this.

"The dynamically changing digital security number on the back of the card is one of the things in development which looks quite promising."