The major barrier to increased online and mobile spending – outside of this economy, of course – is the possibility of losing one’s information to cybercrime. Miri Systems is one of the host of new companies which are trying to find an affordable way to protect consumers from online fraud. “Fear is the number one reason cited by U.S. consumers for not making purchases over the Internet or on their mobile phone,” said Miri Systems CEO Ludwick Zon in an interview with StartUp Beat.

Miri Systems hopes that MiriPay, which enables online and mobile transactions with dynamic, randomly generated point-of-purchase ID numbers, will keep consumers safe from credit card fraud.

To make a transaction, users open company’s MiriPay applet on their computer or phone, then select a time frame for how long their Miri-generated information will last before expiring.

After that, the program generates a temporary expiration date and unique PIN. The dynamic number contains cached information that is used to validate the purchase. Any kind of static number is susceptible to fraud, Miri Systems COO Grant Neerings said in an interview.

Users then click “Use” when they’re ready to make a payment on a merchant site. MiriPay automatically fills out the billing information on the site.

This way, consumers are safe from identity thieves obtaining their information from retailers.

Miri Systems is also working on similar payment options for payment cards that have embedded chips. Unlike many identity-protection programs, MiriPay is a free service.

By Mark Alvarez