VALid-POS® Standard Edition v2
12/08/2014 until 31/08/2016
First recertification on March 31, 2012
Initial certification on March 31, 2010
9 Devonshire Square
London EC2M 4YF
VALid-POS sticks to the principle of data avoidance and minimisation by keeping the personal data processed to the absolute minimum and by making use of obfuscation measures. Buyers of the software are comprehensively informed about their data protection obligations and contractually bound to ensure compliance with the applicable data protection law when making use of VALid-POS.
VALid-POS is a tool to assist financial institutions such as banks or payment processors (henceforth referred to as "banks") in identifying possibly fraudulent credit- and debitcard “card-present” transactions at Automated Telling Machines (ATMs or “cashpoints”) and at Point of Sale (POS) terminals, as used in supermarkets, retailers, restaurants, etc. Basically, VALid-POS verifies, with the help of a partner telecommunications service provider (TSP), whether the card that is being presented is in the same country or area as the mobile phone that the cardowner has registered with the bank.
The TOE has not changed. Nothing has been added to the TOE. Nothing has been removed from the TOE. There are no new regulations relevant to the TOE. The EuroPriSe Criteria Catalogue requirements relevant to the TOE have not changed. The experts verified that there are no new technical standards relevant to the TOE and that the state of the art has not changed.
If a proposed ATM- or POS-terminal transaction is assessed as potentially fraudulent by the bank’s own risk engine, information on the ATM or POS terminal is sent within the bank to the VALid-POS tool, together with the number of a mobile phone which the card-holder has registered with the bank, and a unique lookup reference number. This information does not reveal the geographical location of the ATM or POS terminal: for the software, it is simply a unique (abstract) number.
The VALid-POS tool passes the telephone number on to the partner-TSP. The latter one carries out a “lookup” of the mobile phone in question and, on the basis of this lookup, sends largely obfuscated information on the whereabouts of that mobile phone to the VALid-POS tool. The obfuscation means, in particular, that the information as sent from the TSP to the software does not reveal the geographical location of the mobile phone: for the VALid-POS tool, this too is simply a unique (abstract) number.
The software then correlates the two unique numbers relating to the ATM or POS terminal and the whereabouts of the mobile phone and can determine from this whether it is likely that the card is in the same country or area as the mobile phone. VALid-POS is capable of this because the pattern of links between unique numbers relating to particular ATMs and (obfuscated) unique numbers relating to particular mobile network segments has been previously established by the software during a learning phase.
If the card and the mobile phone are not in the same country or area, this suggests that the transaction is indeed potentially fraudulent, and that the bank should indeed consider declining the transaction as its own risk engine suggested. On the other hand, if the mobile phone is in the same country or area as the card, it is less likely that the transaction is fraudulent, and therefore more likely that the bank’s risk engine’s conclusion was a “false positive”.
Javier Garcia-Romanillos Henriquez de Luna
Ernst & Young (Spain)
Plaza Pablo Ruiz Picasso 1
Prof. Douwe Korff
Wool Street House
Gog Magog Hills
Cambridge CB22 3AE
VALid-POS® Standard Edition v.2