National Australia Bank Ltd. plans to roll out software technology first introduced by its subsidiary Bank of New Zealand Ltd. that is designed to reduce card fraud. The technology works by changing numbers on a card's magnetic stripe each time a transaction occurs at an ATM.
Specific details on how the process works were unavailable.
The bank first tested the technology, called LEN for "liquid encryption number," in New Zealand two years ago, according to the New Zealand-based bank.
The bank claims that the technology allows the bank to automatically detect when one of its debit or credit cards has been duplicated. The card also prevents skimming fraud, in which crooks electronically copy card details from the mag-stripe and then use the information to create counterfeit cards, the banks says.
The LEN technology, developed by Michael Turner, the bank's head of fraud initiatives, makes it simpler to pinpoint when a cloned card is used because it has an outdated set of numbers, according to the bank.
The new technology has cut the incidence of fraudulent transactions from cloned credit cards by 50%, according to the bank.
National Australia Bank will roll out the technology in Australia this year.