Monday, August 24, 2009

Credit, Debit Card Industry at Odds Over Security

A Reuters newswire article by Ross Kerber, via MSNBC, reports that:

Fresh details of large-scale cyber attacks against data processor Heartland Payment Systems and supermarket chain Hannaford Brothers show the challenges facing the efforts of the United States credit-card industry to upgrade security measures.

While both companies say their computer networks met the tough new standards meant to prevent data breaches, Visa said Heartland at least may have let its guard down.

The positions reflect broader disagreements in the industry, as squabbling between merchants and financial firms over technology and the cost of systems upgrades continues to impede progress, said Robert Vamosi, an analyst for California consulting firm Javelin Strategy & Research.

"They both need to fight fraud and they are fighting each other," he said.

The financial stakes are getting higher. Fraud involving credit and debit cards reached $22 billion last year, up from $19 billion in 2007, according to Javelin.

More here.


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