The credit card industry focuses too much on reducing its own fraud costs and not enough on protecting consumers
Published:
28 February 2003 y., Friday
That's the central claim in a new report from research firm Gartner that slams credit card companies for failing to notify consumers when credit card records are compromised by malicious hackers.
The report notes that while credit card companies' "zero-liability" policies protect card holders from paying for unauthorized or fraudulent charges, they do not protect consumers from identity theft and the credit report hell that can follow.
Avivah Litan, Gartner vice president and the report's co-author, said when security breaches happen, banks that issue credit cards seldom notify consumers.
On Feb. 18, Visa, MasterCard and American Express confirmed that a malicious hacker had gotten access to 8 million credit card records through Data Processors International, a company that processes credit card transactions for mail order and online businesses.
The credit card companies quickly issued statements saying none of the stolen card-holder information was used fraudulently, and that all card-issuing banks had been alerted to the problem.
Šaltinis:
wired.com
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
Software company announced new structure_ of it_s business.
more »
South Korea leads the world in providing broadband services. The United States (No. 15) did not make the Top 10 and lag behind Lithuania (No. 14).
more »
Gemalto, the world leader in digital security, today announced that it will inaugurate its first personalization center in Indonesia before the end of the year.
more »
State Bank of India (SBI), the country’s largest lender, has awarded Wincor Nixdorf and its local partner AGS Infotech an order for 1,000 ATMs.
more »
Gemalto today announced it has achieved MasterCard certification for its TSM (Trusted Services Management) offer.
more »
International Conference and Exhibition of Smart Card Technology and Applications will show showcase the latest in Smart Cards, e-security, Biometrics, RFID, and e-payments products and solutions.
more »
Gemalto today announced that it has completed the acquisition of Trusted Logic from its founders and other shareholders.
more »
Thales UK today announces the signing of a contract valued at around £25m with the UK Ministry of Defence (UK MoD) to undertake the role of Mission System Design Authority (MSDA) for the TALISMAN Urgent Operational Requirement (UOR) programme.
more »
Gemalto announced that InterSwitch is deploying its complete Ezio strong authentication solution to secure their e-payment services in Nigeria.
more »
Commission calls for international talks on managing internet traffic.
more »
Israeli student Alon Nir is using the website as a way for people to communicate with the Almighty. He's preparing people's prayers, posted on Alon's twitter page, to take to Jerusalem's Western Wall.
more »