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If you’ve ever had a credit card number stolen, you know what a serious pain it can be. Losing a card to fraud can be the simple annoyance of your card being cancelled by the watchful credit card issuing company and having to wait for a new card to a full out identity theft which can cost thousands. How are cyber thieves stealing the card numbers? The main way for thieves to get your information comes from beaching the older large department stores’, or “Big Box Stores,” often-antiquated technology. A customer’s single biggest vulnerability for identity theft and credit card fraud is using your card at major retail stores that have repeatedly been breached by hackers. These stores use outdated kiosk computers to process sales. These retailers have allowed clever thieves to install viruses that silently relay customers’ credit card info back to them. This is how Target negligently lost … Continue reading
Sen. Richard Durbin (D-IL), who was wrong about price controls on interchange fees on credit and debit card transactions fives years ago, now sides with the big box stores in pushing for ineffective “chip and pin” protections on credit and debit cards. Durbin is hardly an expert on these issues, but he surely is bought and paid for by retailers. While it’s claimed the lack of these features makes us vulnerable to fraud, the single biggest vulnerability is for identity theft and credit card fraud in your name: it’s using your card at major retail store that have repeatedly been breached by hackers. Contrary to what credit card security expert Durbin claims, more than chip and pin is needed to ensure security of our credit and debit cards. Using outdated kiosk computers to process sales, retailers have allowed clever thieves to install viruses that silently relay customers’ credit card info … Continue reading
Can you really trust Sen. Richard Durbin (D-IL) to stand up for consumers and get it right this time? He claimed fives years ago that putting price controls on credit and debit card translations, something demanded by big box retailers, was in our interest and he turned out to be wrong. We as consumers have not seen any benefit from that. Now the senator, who would have us believe he’s an expert on identity theft and credit card fraud, thinks “chip and pin” features on our credit and debit cards will protect us. But these measures won’t protect us from the instances of hackers obtaining our card data from major retailers like what happened in the last few years with Home Depot and Target where millions of customers had their billing information obtained by hackers. Sen. Durbin has had a cozy relationship with retailers like Wal-Mart and Home Depot. His … Continue reading
Sen. Dick Durbin hates free markets but loves crony capitalism. Durbin has carried water for big box retailers for years and was successful in enacting a measure to force price-controls on interchange fees for credit cards — a measure that helped his friends in retail at the expense of consumers. Now Durbin is at it again, pushing a measure he argues will cut down on credit card fraud but is, in reality, nothing more than window dressing for the stores have provided hundreds of millions of credit card numbers to cyber thieves. It’s no secret that the retail stores have become juicy targets for crooks looking to steal credit card numbers. Target’s computer system was breached and 70 million credit card numbers were stolen in one feel swoop. Home Depot was responsible for 56 million credit cards being stolen. Rather than work with security experts and credit card companies, the … Continue reading
The Great Recession devastated the American economy and disrupted the lives of millions of Americans who were laid off or lost their homes to foreclosure. In an effort to promote economic recovery and ward off another financial crisis, Congress passed legislation to reform the financial system and establish safeguards for American consumers. By many measures, the economy is now recovering, but a recent paper based on the congressional testimony of a law professor at George Mason University argues that the financial reform legislation is actually hampering economic growth. Todd Zywicki maintains in his recent paper summarizing testimony given to the U.S. House of Representatives Financial Services Committee that, five years after its enactment, the recession-responsive legislation is failing to achieve its goal of protecting consumers and investors. He contends that several pieces of financial reform legislation are increasing inflation, reducing consumer choice, and limiting millions of Americans’ access to credit. … Continue reading
When U.S. Sen. Dick Durbin persuaded Congress to cap the fees retailers pay for debit card processing, he promised the retailers would pass the savings on to consumers. Studies have shown they haven’t, and four years later, bankers and others say the Durbin amendment, passed as part of the Dodd-Frank financial reform law, is an abject failure.
In a recent op-ed, the National Retail Federation painted a pretty dire picture of the state of payments security. What was shocking about the piece was that it didn’t represent any of the security developments of the last few years. However, it did represent the dangerous perspective that merchants don’t have a role to play in implementing security technology. The truth is, the electronic payments system is interdependent and while the financial services industry has spent billions of dollars developing new technologies, they can only be so effective if merchants refuse to adopt, or even acknowledge, those technologies. As a result, I thought it would be helpful to describe some of the actual tools that exist today that can create a more secure payments system. The most visible change is the migration to EMV or chip cards, which you may have noticed on the front of your credit or debit … Continue reading
Four years later, the evidence against merchants continues to pile up. Four years of consumer research by Phoenix Marketing International (PMI) has found that consumers continue to say they are not seeing savings.
It’s no secret that innovation requires investment and commitment, especially when it comes to payment security. Consumers benefit most when all participants come together to achieve results. That is why credit unions and the financial services industry are committed to developing and investing in an electronic payments system that protects and benefits the millions of Americans who use it every day to make secure and convenient payments.
October 1, 2015 marks the fourth anniversary of the Durbin amendment’s implementation, but consumers aren’t celebrating. Once again, a new survey shows at least 92 percent of shoppers in each of the 15 categories measured reported that prices have increased or remained the same over the past year. This survey provides additional evidence that despite retailer promises that they would lower prices after realizing savings from the amendment – savings that now total over $32 billion – consumers generally have not seen savings.