Credit Card Fraud

[Kevin James]

With the recent breach of security at Target and the loss of Credit card/Debit card information of 40 Million customers does anyone see any changes coming to how credit cards will be handled in the future?

Will the mag stripe card be replaced with a Smart card? Will it require any equipment changes?

Just something to think about

 

[mjwalsh]

Kevin,

http://www.csmonitor.com/Business/L...Weak-card-security-made-Target-a-juicy-target

In our case it would be just the one card swiper on our ATM. From what I gathered it seems that Target will be bearing the brunt of the costs ... hopefully the Minneapolis based company will not go under because of it ... possibly among other factors. The smaller the company the less likely that they will be able to prove that it was not related to their set up it seems.

Another reason to not put all our "eggs in one basket" when it comes to our payment systems ... which includes not diminishing the use or practicality of higher denomination coins.

Yesterday, at our mega bank, the long term teller lamented to me that their computers were crashing in the morning & that they were overwhelmed by customers cancelling their current credit card that was used at Target for a new number ... ready for the next go around. NBC ... if I remember right the evening news showed a 15 second process for setting up even a hotel room key card as a swipe card that would work ... once the original card is compromised.

It is kind of a double edged sword ... at a recent luncheon amongst us Chamber of Commerce members ... our Senator John Hoeven ... kind of posed the quick question of "how much protection do we want" & to be a aware of surveillance trade-offs.

Mike Walsh http://kingkoin.com/USA_Deficit_Reduction.html

 

[rph9168]

From what I have read it will probably be a while before they switch from a magnetic swipe card to one with a chip embedded in it. The reason for that is that while embedded chip cards with are supposed to be much more secure than magnetic swipe cards they are also much more expensive to make. Maybe security breaches like this one will expedite it but I doubt it.

 

[robert roman]

Target eats loss because 40 million people are not going to give up their plastic.

Swipe cards are eventually going to be surpassed by mobile payment with smart phones.

Also growing in presence is virtual currency like Bitcoin that is decentralized.

Pitcoin is currency and payment system. Transfer money to anyone, anywhere, anytime with no middle man, no fee. Amazon is now introducing its own currency.

How does this help the coin cause?

According to GAO, the Fed has enough $1 coins on hand to meet demand for more than 40 years.

GAO finds very low public demand for coins.

 

[Earl Weiss]

Credit caed companies need to have teir feet held to the fire. At my gas station if a card holder reports fraudulent use the card issuer requests a copy of signed the sales draft. There is no signed sales draft for "Pay at the Pump" The card issuer then makes me eat it. Me, the merchant wit the least control.

Now, some genius figured some purchases require a PIN that consists of the Zip code. I bet most have the a\card biiled to their home and if their wallet is lost it has the zip code in it. How stupid is that? Oh, wait, why should the card issuer care if the merchant eats it. They already have technology in place to require a PIN, so why not just require one to be entered? Why, because people want it easy and Fast and as long as others foot the bill, so much the better.

 

[MEP001]

I use my credit card at Target - it has the chip, so I just tap it on the pad instead of swipe it. They still get the card info, so that's not any more secure than swiping it.

My question is, why is Target storing my card info at all?

 

[Earl Weiss]

MAs transit put in their fare card system in Chicago. It works with a tap. People started tapping the whole wallet. Now some had other cards in the wallet that workswith a tap get charged as well.

MEP is correct.. Ithought part of the last mandated security upgrade we all had to do meant our system did not store CC info.

 

[MEP001]

PCI compliance is for unattended POS units, and despite the way they've made it sound, its not a mandatory compliance.

 

[Kevin James]

From what I’ve read they are talking about requiring a 4 number pin number for credit card transactions at the point of sale. That might be kind of hard to add on a key pad to a car wash coin box, not to say expensive for the business owner. The one wash we have that takes credit card is pretty much a break even deal.

 

[Earl Weiss]

From what I’ve read they are talking about requiring a 4 number pin number for credit card transactions at the point of sale. That might be kind of hard to add on a key pad to a car wash coin box, not to say expensive for the business owner. The one wash we have that takes credit card is pretty much a break even deal.

Since every gas pump has the keypad the technology is already there.

 

[bigleo48]

Interesting ready this....

For a Canadian perspective, we use the chipped CC almost exclusively for some time now...along with a PIN. Even at gas bars...put card in, it holds it, detects chip then asks for pin, then releases the card. My WSII creates confusion with customers cause they expect the chip...or that their magnetic strip on the card doesn't work, but haven't noticed since I'm the only vendor that doesn't use a chip.

I live along the US border and I find it weird not using the chip in the USA. At various store, cashiers have to continuously remind Canadians not to plug their CC in the chip received cause it doesn't work.

The chip has cut down on CC fraud at the terminals, but the servers that hold the data are where thieves are focusing now.

 

[rph9168]

I read recently that the benefit to the chip is that the cards are expensive and hard to duplicate. If thieves get the pin they could buy on line but it reduces thefts based on duplicated cards.

 

[Earl Weiss]

Seems the simplest thing to do is first require the PIN. Technology is in place. I have seen the phony swipers that photgraph a PIN, but I can't help but think this is a small percentage comparewd to actual lost / stolen physical cards.

 

[mjwalsh]

From what I’ve read they are talking about requiring a 4 number pin number for credit card transactions at the point of sale. That might be kind of hard to add on a key pad to a car wash coin box, not to say expensive for the business owner. The one wash we have that takes credit card is pretty much a break even deal.

Kevin & Earl,

Note the comments by specialists in the field about pins & signatures: http://www.mailtribune.com/apps/pbcs.dll/article?AID=/20131228/BIZ/312280303

This just reinforces that we should all agree that for at least a portion of our business ... especially self serve ... we should not be in favor of anything that diminishes the use of higher denomination coins & the use of more $5 & $10 paper notes.

Mike Walsh http://kingkoin.com/USA_Deficit_Reduction.html

 

[cwguy.com]

Are you guys talking about two totally different technologies as one? Smart cards (like dss sat use) and rfid cards (like everyone uses to track things). Like mep1 and bigleo pointed out both are irrelevant when it comes to targets issues. It's just funny how agendas get in the way like surveillance and larger coins.

Each card technology you can purchase cheap reader/writers for.... And when money is involved it doesn't matter how it's encrypted.

BTW does anyone ever read Robert Roman's posts? Amazon has had there own pay service and it is not for commercial use without fees. Also bitcoin? Really.... try and get anyone over 40 to use it. Well maybe anyone who actually reads about it?

 

[Earl Weiss]

Kevin & Earl,

Note the comments by specialists in the field about pins & signatures: http://www.mailtribune.com/apps/pbcs.dll/article?AID=/20131228/BIZ/312280303

This just reinforces that we should all agree that for at least a portion of our business ... especially self serve ... we should not be in favor of anything that diminishes the use of higher denomination coins & the use of more $5 & $10 paper notes.

Mike Walsh http://kingkoin.com/USA_Deficit_Reduction.html

This is irrelevant on many levels.
1. Experts seem to disagree - big surprise.
2. Layover swipers with cameras have been used stealing mag swipe data and PINs which makes encryption of PINSs meaningless.
3. Whether I favor larger coins vs Credit cards means nothing if the consumer favors something different.

 

[Earl Weiss]

BTW does anyone ever read Robert Roman's posts? )

I try, but sometimes after the third line of my eyes tend to glaze over.

 

[vinh]

The future of credit card is in smartphone NFC. Too bad for us, it will cost more for owner to have to upgrade to the last technology. I personally hate to use credit card. I like to keep the 7% cost to myself instead of letting merchant guys get it. As for the Target debacle, time to buy some Target stock. Two year from now, noone will remember this event.

 

[cwguy.com]

I don't think the US can handle NFC. Even though the majority of phones probably have NFC right now? (Android) But there is really no reason you couldn't use bluetooth instead? (iphone)

Also using logic to purchase stock? Really Vinh? Everyone knows.... "Buy high..... Sell low!"

 

[bigleo48]

"we should not be in favor of anything that diminishes the use of higher denomination coins & the use of more $5 & $10 paper notes."

I completely disagree. CC users buy on avg 40% more and I don't have to deal with the security, handling and deposit costs. It would save me hours of grief every week!