A technology company is taking on fraud in the Czech Republic’s capital city. Although taxis in Prague are infamous for abusing passenger trust, mobile audit software for passengers could change things:

…a Czech IT firm, Et Netera, has come up with a method which could deal with even the most notorious abusers. It says it’s developed a smart phone application that uses GPS to measure distance and calculate the proper fare. Called the ‘virtual meter’, the free app calls a cab from a list of approved firms, calculates the distance and displays the projected fare. All the customer has to do is sit back, watch the display, and enjoy the ride.

Et Netera says it’s offered the system to Prague City Hall after one of its foreign business partners was ripped off in a cab. The application will make it possible to report offenders to the authorities on the spot, and even call a special City Hall helpline.

Maybe this can be used on friends and family as well. “Dad, you’re taking us the long way to the bridge! I’m reporting you to the tourist bureau.”

Although the audit capability for passengers is an interesting angle it raises problems in terms of security economics — everyone should not have to buy their own meter.

The city would get a better return on investment if cabs were required to use a secure GPS-based dispatch and metering system. This would have additional benefits at lower cost. A dispatcher could get real-time data on the location of cabs, for example, and give faster service while passengers would share the meter instead of each having to buy their own.