Paul Beverly, President of Gemalto North America, in an article published in Contactless News, is calling for the US to follow the lead taken by the rest of the world and implement EMV standards here in the US.Editor's Note: The name EMV comes from the initial letters of Europay, MasterCard and VISA, the three companies which originally cooperated to develop the standard. EMV is a standard for interoperation of IC cards ("Intergrated Circuit (Chip) cards") and IC capable POS terminals and ATM's, for authenticating credit and debit card payments. To learn more about Gemalto, click their logo above left...
He questions whether there's such a thing as "acceptable fraud losses" amidst the rising tide of criminal activity associated with "magstripe" cards.
Here's what Mr. Beverly has to say: He starts us out with some some interesting statistics from 2008:
When fraud and fear are undermining consumer confidence in e-commerce, as it is today, at some point that logic becomes bad business. (continue reading at Contactless News)
Editor's Note: I agree and the same "well-worn mantra" is hurting consumers as much, if not more, than it's hurting etailers. (The only winner's here are Visa/MC and the banks who profit more from an unsecure transaction because of the higher interchange fees that come with them. )
Starting an EMV initiative here in the US would take years and cost billions. Starting an Internet PIN debit initiative would take months and save millions. What's unacceptable is online debit for online shopping. Fraud losses can be significantly reduced by making PIN based transactions "acceptable."
Here's what Mr. Beverly has to say: He starts us out with some some interesting statistics from 2008:
- The Federal Trade Commission estimates that as many as nine million Americans have their identities stolen each year.
- The Privacy Rights Clearinghouse estimates 245 million records have been compromised due to security breaches since January 2005.
- The sting operation by security software provider Symantec showed stolen credit card accounts are sold like commodities online, at a quantity discount of one dollar if you buy 100 or more. These are for full packages with name and address, card expirations and CVV2 security numbers.
- Gemalto’s own “Digital Trust Barometer” survey showed 57% of Americans are afraid someone will steal account passwords when banking online, 38% do not trust online payments, 74% are afraid of identity theft and 44% are afraid of online bank account hijacking.
When fraud and fear are undermining consumer confidence in e-commerce, as it is today, at some point that logic becomes bad business. (continue reading at Contactless News)
Starting an EMV initiative here in the US would take years and cost billions. Starting an Internet PIN debit initiative would take months and save millions. What's unacceptable is online debit for online shopping. Fraud losses can be significantly reduced by making PIN based transactions "acceptable."
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