Visa PayWave - doubts on security start to surface

Interesting to see that, as the Visa PayWave near-field-communications system takes off around the world that commentators are beginning to realise the security implications of using this PIN and signature-less payment system.

One report in the US says that, even though there are 41 card-issuing banks involved with PayWave around the world, and there are 32,000 outlets accepting the cards, there is still a downside to the Visa payment card system.

The downside is, of course, that fraudsters can skim the cards wirelessly, without the cardholder even being aware that they're being ripped off.

"The card issuers deny it, but some people think this technology exposes you to greater security risks, such as identity theft," says one newswire.

Visa, meanwhile, insists that the data on PayWave cards can only be processed by secure readers at authorised merchants.

Pardon? Fraudsters have proven, time and again, that they are capable of beating secure systems, so what makes Visa so confident that fraud won't occur on its PayWave system?

Visa is either being extraordinarily arrogant, or stupid. Or both.

But what do I know about such matters - I've only been writing about them for a quarter of a century...