Bankers Force FBI to Take Down Warning About Chip – Enabled Cards


Susanne.Posel-Headline.News.Official- chip.cards.fbi.bankers.association.retailers.hackers.fraud_occupycorporatismSusanne Posel ,Chief Editor Occupy Corporatism | Co-Founder, Legacy Bio-Naturals
October 9, 2015

 

The American Bankers Association (ABA) contacted the Federal Bureau of Investigations (FBI), asking that they take down a public service announcement (PSA) warning about vulnerabilities with chip-to-pin cards.

The FBI’s Internet Crime Complaint Center (IC3) revealed that attacks on retailer’s point-of-sale technology and fraud are not protected by using chip-to-pin cards.

While these cards do not protect customers from fraud and hacker attacks, the magnetic strip that are still on the cards are the point of vulnerability.

This means that customer data can still be stolen using point-of-sale malware; and online purchases are still a point of concern because the merchant cannot verify the physical card.

Doug Johnson, senior vice president of payments and cybersecurity policy for the ABA, commented : “We saw the PSA yesterday and spoke to the FBI after we saw it and we thought it was not really reflective of the U.S. marketplace and thought there would have been some level of confusion with the use of PIN.”

Back in October of 2014, President Obama signed an executive order to implement the BuySecure Initiative (BSI) to “provide consumers with more tools to secure their financial future by assisting victims of identity theft, improving the Government’s payment security as a customer and a provider, and accelerating the transition to stronger security technologies and the development of next-generation payment security tools.”

In January of the same year, the National Retail Federation (NRF) wrote a letter to Senate Majority Leader Harry Reid and House Speaker John Boehner to implore Congress to adopt the chip-to-pin cards with legislative backing in order to ensure the public is protected by the federal government against hackers.

Two months later, Visa and MasterCard combined forces to revamp payment processes and up security measures in the wake of retail data breaches.

This new super-group of credit issuers will include:

• Banking institutions
• Credit unions
• Retail corporations
• Industry trade groups

The purpose of the conglomerate is to push for the adaptation of the EMV chipped card so that activity can be monitored for customer safety.

Both MasterCard and Visa laid out an ultimatum to the public that by October 2015 all retailers must adopt this new payment system or suffer the consequences.

Ryan McInerney, president of Visa asserted: “The recent high-profile breaches have served as a catalyst for much needed collaboration between the retail and financial services industry on the issue of payment security.”

The Smart Card Alliance (SCA) believes that “chip-based payment cards and terminals” are the only way to protect customer funds.





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