Sunday, September 12, 2010

US Credit Cards: Slow to Stop Hackers?

As I mentioned previously, there is a movement to proliferate a new credit card that will minimize fraud. This article seems to think that the US is slow to adopt measures that will put the breaks on fraudulent credit card activity.  Heartland Payments,  a processor that had been hacked and led to a large data breach in 2008 is now in the news yet again.

 As per the article: In Austin, police are investigating a series of frauds that affected customers of Tinos Greek Cafe, a local chain whose credit card transactions are processed by Heartland. Police said they think the Tinos-related problems were caused by a security breach in the network linking the restaurants and Heartland. Some Tinos customers reported phony credit card charges on purchases made in this country and overseas.

What's the bottom line? US banks are not willing to deal with the costs associated with advance technology that will make credit cards more secure. They feel the amount of loss via fraud does not justify the expense.

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