Why did we chose to drop conventional plastic cards? (part 1)

Card Theft and Card Skimming

Modern credit/debit cards are equipped with wireless NFC — RFID technology allowing payments to be made easily. However, what they do not tell you is that this same technology is at risk from electronic fraud. “Skimming” or electronic fraud is a worldwide problem with millions of thefts per day! It can be done in seconds with a standard skimming device.

Credit card skimming is a type of credit card theft where crooks use a small device to steal credit card information in an otherwise legitimate credit or debit card transaction. When a credit or debit card is swiped through a skimmer, the device captures and stores all the details stored in the card’s magnetic stripe. The stripe contains the credit card number and expiration date and the credit card holder’s full name. Thieves use the stolen data to make fraudulent charges either online or with a counterfeit credit card.

Credit card skimmers are often placed over the card swipe mechanism on ATMs and gas stations, but the skimmers can be placed over almost any type of credit card reader. With ATMs, the crooks may also place a small, undetectable camera nearby to record you entering your PIN. This gives the thief all the information needed to make fake cards and withdraw cash from the cardholder’s checking account.

Once the victim’s credit card information is stolen, thieves will either create a cloned credit card to make purchases in store, use the account to make online purchases, or sell the information on the internet. Victims of credit card skimming are often unaware of the theft until they notice unauthorized charges on their account, have their card unexpectedly declined, or receive an overdraft notification in the mail.

How GoByte Pay protects you?

Unlike conventional plastic cards, GoByte Pay cards are not physical. They are stored virtually on the GoByte Pay mobile and desktop apps. They do not need any contact with a physical ATM machine or POS terminal other than a simple touch of the mobile (NFC), which can also be avoided by simply scanning the QR code to pay. This way we increased the security of the GoByte Pay cards to the point where is almost impossible to execute a successful card theft or card “skimming” without physical access to the user’s device.

Real-Time account monitoring allows you to detect, in seconds, when an unauthorized transaction takes place. You are completely aware of the transactions made from or to your GoByte Pay card by checking your public address on the blockchain.

Two-Factor authentication protects your GoByte Pay account from unauthorized transaction, requiring you a token before executing a transaction. The Two-Factor Authentication caries on to your account inside the GoByte Pay ecosystem, no matter on what device you import the GoByte Pay card keys, it will always ask you for the 2FA token.

GoByte Pay card is very similar to contactless payments already used in many countries, with the addition of two-factor authentication via Pay-Touch ID, Pay-Face ID, PIN or passcode.

GoByte Pay-Touch does require GoByte Pay-specific contactless payment terminals; it does not work with any merchant that accepts contactless payments.

Note: We can protect you as far as you are using the GoByte Pay ecosystem to transfer, spend or hold the funds. We cannot protect you outside its ecosystem. You are your own bank, your own risks.