_______________________ Copyright EMAP Computers, 1995 Network Week, London, Vol 1 No. 8, 25 October 1995 Page 1 Lead Electronic cash card system faces possible legal action MONDEX BLOWS USERS ANONYMITY By Gavin Clarke and Madeleine Acey Mondex faces possible legal action after admitting transactions made with its supposedly anonymous electronic cash cards can be traced. Launched in December by Natwest, Midland and BT, the electronic card was promoted as easy to use and as anonymous as cash, with no trace being left. It was perceived that a significant percentage of the public avoided credit and debit cards because they preferred their spending habits to remain private. Simon Davies, Visiting Professor of Law at Essex University, has lodged a complaint with the Trading Standards Board demanding that Mondex change either the retailers card readers or its promotional material. It has been revealed that the readers keep records of up to 500 cards identities. The customers can keep a record of ten transactions. The retailer sends the money to the bank through a 9,600 modem-based Mondex phone Rob Jameson, Mondex project manager for the pilot in Swindon, said we can certainly trace where cards have been used. There are degrees of control that Im not prepared to discuss. There are other mechanisms in place but I dont want to go into that. Davies said this contradicted previous Mondex publicity material. It said In everyday use Mondex transactions are anonymous, just like cash A Mondex spokesperson denied last week that the company said its card offered anonymity. But the same spokesperson said in February 1994 that the cards anonymity would appeal to those with a cash psychology, such as cab drivers and other cash-in-hand business people. Mondex entered a new phase last week with the launch of specially designed public telephones that will allow its 8,000 Swindon trial customers to re-load their cards from their bank accounts. The Data Protection Registrar said people using Mondex and other smart cards should be made aware of the uses to which their card information will go. ---------- Photo of Mondex promotional material and caption : Mondex card use can be traced, despite claims of anonymity. ends --