On the cards
Summary Description Simon Vandore looks at
transaction security and the Peter Reith affair.
Author
Publication
Roullas Top10 Simon Vandore
Newswire
No
Editorial InformationArticle Location
Article Topic Vandore
Story Order
Story Group 001022
Post Date 20/10/2000 06:52 AM Status Posted Entered by Simon
Vandore on 19/10/2000 11:55 AM
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Content
Introduction
Some time ago when I bicycled myself into the wild blue yonder,
my father gave me his Telecard number and PIN. In post-communist
eastern Europe, between running from rabid dogs and farmers with
pitchforks, it was handy to be able to ring and say "hi, I'm
alive" when I couldn't track down the correct change in
zlotys, forints or lei.
Body
I kept the card number in my wallet and the PIN in a pannier.
Unlike Paul Reith's daddy, my father (a job-seeking agribusiness
guru, if you're in need of one) was footing his own phone bill,
so I exercised caution. My trip was otherwise funded through
writing for APC in Sydney, answering complaint letters for a
loans company in wintery Glasgow, and an inheritance from my late
Great Aunt Winifred in Dundee.
After reaching China over land I flew to Australia and handed
back the card details, but it struck me that this Telecard
business was incredibly insecure. To this day I've never even
laid eyes on the original card, yet I've used it in foreign
countries and it almost became a fringe benefit for Romanian
gypsy muggers.
The only security measure was to record the numbers on two
separate pieces of paper, but I'm sure plenty of users keep them
together, relying on security through obscurity. For those
unfamiliar with how a Telecard works, it's basically a means of
making a call from any phone in almost any country and having it
charged back to your home or work phone bill. The only
requirement is that the country in question must have a toll-free
operator number which can accept the card number and PIN,
followed by the number you want to call.
Telephone companies must be very happy that their customers are
silly enough to carry these things and share the risks with
relatives. It must be a great moneyspinner when the original
customer has to pay up for others' greed. Obviously, people who
think they can make free calls tend to make a lot more of them
than usual and Telstra has done pretty well out of the Reiths (or
is that the taxpayer?).
For most people, an extra PIN is simply too much to remember in a
world of automatic teller passwords, voicemail codes and ABNs.
It's the sort of thing you have to write down and carry, which
you'd never do with an ATM card (right?). The Prime Minister can
say Peter Reith lacked judgement in giving his son access and the
licence agreement may support him, but I wouldn't be surprised if
Howard did the same if his kids went backpacking. Perhaps Reith's
real mistake was not to apply for a new PIN afterwards.
The nature and acceptance of Telecards is another thing that
makes Internet transaction security concerns sound ludicrous. Who
cares if your credit card details are being encrypted with 64-bit
or 1028-bit security while they travel to a cyberstore in Sweden?
What about when your card travels to a restaurant cash register
in the hands of a waiter? You actually lose sight of the card for
a significant time, allow a copy of it to be taken for the
transaction, then scrawl your acceptance of these risks.
Surveys consistently report that consumers are reluctant to
transmit their credit card details online, yet they will gladly
do so via Australia Post or over the phone. It's nuts! Whether
it's a restaurant meal, mail-order clothes, or ordering a bunch
of flowers, there are gaping holes in the whole philosophy of
credit cards. The Internet should really be more of a solution
than a problem -- we are well overdue for a move to smartcards
and desktop readers.
Unfortunately that won't help Peter, Paul, Miss X and Mr Y
(noughties supergroup?). The day you can swipe a smart Telecard
in downtown Timisoara or uptown Bukittingi, I'll eat my batik
shirt. Until then it's PINs and needles, telephone elbow for the
phone thieves.
Postscript: Regular readers (do I have any?) may remember
comments on a trend towards computer monitors appearing among
garbage for roadside collection. There's another one sitting out
there today in the rain. Have you ever seen anything so miserable
as high technology sitting in a puddle?
Vandore appears every Friday on Newswire. You can contact
Simon Vandore on svandore@acptech.net.
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Bulletin SummaryVandore: On the cards
Simon Vandore looks at transaction security and the Peter Reith
affair.
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Vandore: On the cards
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