Security Research Centre, School of Computer and Security Science, Edith Cowan University, Perth, Western Australia
The prepaid card market in Australia is growing rapidly. Its features not only attract customers from all sorts of backgrounds but also expose it to numerous risks. Using the methodology of the Australian Risk Management Standard AS/NZS4360, this paper looks at the risks inherent in prepaid cards. Concentrating on two major risks, the paper details the regulations governing the industry in the USA as well the technical controls employed by the credit/debit card industry. We suggest risk mitigation strategies from these two view-points, aiming to become an important reference both for industry as it adopts better risk mitigation techniques, and for government as it improves the laws and regulations governing this industry.