Donald G. Campbell, vice chairman of TJX Co., laments the fact that “smart” cards weren’t in use when his company had its unfortunate security breach. In 2006, fraudsters tapped into Marshall’s stores using wireless connections and made off with about 100 million credit and debit card numbers. Campbell estimates that TJX spent $202 million on law suits, security consultants, and other expenses related to the breach. But how much would it cost to make a business truly secure in the United States?
Unlike many European countries, the U.S. doesn’t require cards to have smart technology and additional layers of security such as PINs and microchips. Industry insiders speculate that it would cost billions of dollars to upgrade every credit card and card reader in the U.S. At that price, security breaches sound like a bargain.
But Campbell and a growing number of proponents are in favor of adopting the “chip and PIN” security measures. Since instances of credit card fraud in the United States are still statistically low, it might take a lot more to persuade banks and card companies to upgrade their security. But if major breaches are allowed to continue unchecked, it’s only a matter of time before chip and PIN opponents are convinced.
In the meantime, you can select a smart card for your own personal use. The U.S. General Services Administration offers smart card information at their web site: http://www.smart.gov/.
Unlike many European countries, the U.S. doesn’t require cards to have smart technology and additional layers of security such as PINs and microchips. Industry insiders speculate that it would cost billions of dollars to upgrade every credit card and card reader in the U.S. At that price, security breaches sound like a bargain.
But Campbell and a growing number of proponents are in favor of adopting the “chip and PIN” security measures. Since instances of credit card fraud in the United States are still statistically low, it might take a lot more to persuade banks and card companies to upgrade their security. But if major breaches are allowed to continue unchecked, it’s only a matter of time before chip and PIN opponents are convinced.
In the meantime, you can select a smart card for your own personal use. The U.S. General Services Administration offers smart card information at their web site: http://www.smart.gov/.
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