Why is the United States not up to date with Europe in issuing safer credit and debit card transactions? Europe has had the chip and pin credit and debit cards since the year 2004. These new security chip cards started to become a trend in the year 2014 in the United States. The United States has over ten million credit card terminals so it was hard to get such a large market to adopt to a new type of technology. There are three sectors of the market that had to work together which were the retailers, big financial institutions, and then the card associations like Visa or MasterCard. Retailers and credit card companies could never decide who would pay the transaction fees so there was another conflict that slowed the process of implementing …show more content…
Most consumers don’t know that they aren’t liable for any unauthorized transactions made with their own credit cards. During the year 2014, credit and debit card fraud resulted in losses up to $16.31 billion. Card issuers bore a share of sixty-two percent of losses due to fraud; where merchants have the other thirty-eight percent of the liability. Losses that occur with the card issuer are usually at the point of sale, and this is due to counterfeit cards. Losses that occur with the merchant usually only occur in a card not present transaction such as online or over the phone. In 2014, the United States had 48.2% of card fraud losses worldwide. Retailers encounter $580.5 million in debit card fraud losses. They in return spend $6.47 billion on credit and debit card prevention, but there is more that could be done. In 2011, statistics show that eighty-five percent of all fraud with debit cards involved a signature verification. Of the $1.35 billion in debit card fraud losses, $1.15 billion included debit card transactions using a signature (Kiernan). These debit and credit card frauds amount to a lot of money for the banks and the retailers, but maybe paying an extra amount towards prevention would be worth it for …show more content…
It makes it a lot harder for criminals to steal your information and exploit retailer’s payment systems, but this is only in certain cases. There is no protection against card not present fraud or having your card lost or stolen. Retailers are spending billions of dollars upgrading their payment terminals only really to help fraud against banks not really the people themselves. A lot of retailers still don’t have their payment terminals up to date so in those places, the cards containing the security chip are useless. Banks are spending all of this money to implement this new feature into their credit and debit cards, and a lot of the stores don’t even have their systems updated to use the card the way it’s meant to be used. Most chip cards do require a signature but only for certain amounts, but the problem with that is that there is no legitimate way to verify a signature made by that person at that time. Anyone could use your card the intended way, and then just sign for it, and that company would have no way of knowing if that is your card. It would be more efficient to have a pin number with every chip card, and the legitimate way of knowing that card belongs to you is by typing in your pin number. So instead of having chip and signature, they should create pin numbers for every card for every transaction no matter how much
...rder to better protect consumers. I learned that in Europe, there is a technology that supports greater cardholder verification, and there has been a great decrease in the number of people affected by financial fraud. I think that advanced technology like this should be more widely used in order to make credit card use more secure.
The idea is to allow any authorized person to verify the identity of a person. This would help in certain isolated situations, but would only have a limited effect on crime. The ID card contains, name, address, sex, photograph, fingerprints. That might also include place of employment, data of birth, perhaps religion, perhaps name of children, spouse, and health insurance coverage, may be credit records. Here I am talking about someone’s privacy. Since the ID card contains all the data about a person on it, then where is the privacy when the card is swiped? More high tech national id system would enable the federal government and its contractors to follow and...
... a candy bar. These thin wallet size magnetic strips are the keys that unlock the vaults of banks, ATMs, and any cash dispenser around the world. Credit cards have become important sources of identification holding a name and number of a cardholder in just a thin card. There are many cardholders around today such as American Express, Discover, Master Card, and Visa. These companies go head to head with customers around the world. These thin wallet sized cards are a part of most Americans everyday life and some people are very dependent on them. If you come into a situation where you don’t have cash all you have to do is use your card and pay it off later. As many Americans say “I’ll charge it”, this has become a world wide saying. The modern day credit card was invented many years ago and will be continued to be in use for many years to come.
In response to the emergence of credit card fraud in 1984, congress passed the Credit Card Fraud Act to give federal prosecutors a broad jurisdictional base to more effectively prosecute a variety of credit card frauds. This act broadened the definitions of credit card and debit instrument to any "access device," including an account number, increased the maximum penalties of incarceration and fines, and provided a substantial repeat-offender penalty (U.S. Department of Justice, 2013).
Alan M. Dershowitz states in his thesis that he supports having a national identity card with a chip that can match the holder’s fingerprint. He states that having a national identity card with a chip can be an effective way of preventing terrorism and reduce the need for other law enforcement mechanism like racial and ethnic profiling. The evidence he provides is that we are already required to have photo ID’s for driving, drinking, and flying. The majority of Americans already carry on them their photo ID’s so it would not be an inconvenience to have to carry another photo ID. Alan then states that the way to combat any fear people of the government being too intrusive is by having only specific government officials ask to see your national
Miller, J. (2008, January). Resources: Credit Card Security . Retrieved February 21, 2011, from Arizona Society of Certified Public Accoutants : http://www.ascpa.com/Content/39591.aspx
Credit cards are something that are almost needed in everyday life now, as most dont have the money available to purchase a car or house and so need credit, thus needing credit cards to help build that credit. Those cards are hard to handle, and receiving applications in the mail daily, and commercials appearing on television don’t seem to make the struggle of staying away any easier. This starts to spark an interest. So people begin to think, "I think I 'm responsible enough to get a credit card, I 'll only use it for emergencies." Then the application process begins and it may take a couple times to finally be approved for one. This only makes it worse, of course, because realizing how long a credit card wasn’t applicable to life, but now
Embezzlement has become more common in the last few years. No one knows for sure whether the problem has increased due to the bad economy, less ethical behavior among employees or other attitudes toward the government or businesses in general. Charleston, South Carolina is no exception to the rising number of fraud cases. Every year more cases are being discovered and exposed to the public. One such case is the embezzlement of cash from a county owned garage. The embezzlement case of Martina Moultrie Richardson will be discussed as well as types of evidence desired in this case, methods/procedures for gathering the evidence and procedures for cataloging and maintaining the evidence.
Your identity is unsafe in more places than you may realize. Every store you walk in has the possibility or either having someone behind the counter, or someone hacking into a business from outside, readily waiting to steal your identity. Using your credit card in any store is never safe no matter what signs are posted around the store, or how big the company is; it’s not always the people who work there that want your identity. The article Identity theft growing, costly to victims in The Arizona Republic, J. Craig Anderson ...
There are a lot of fears in the world. Some fear dying and public speaking, but several people fear being a victim of identity theft. Identity theft or also known as identity fraud is a cyber-crime in which a person’s social identity or a business identity is compromised or leaked in various ways and result in devastating consequences. These consequences can ultimately destroy the personal identity or business (cited in Carbajo). Around the United States, numerous consumers and business owners are losing substantial amounts of money due to identity theft. There have been several organizations that been targeted such
...n would become a very valuable document which gives a greater incentive for criminals to find ways to forge them. If cards become widely used and widely trusted, then the rewards for anyone who can find a way to fake them are potentially huge. Governments do not have a monopoly upon electronic research and digital information can be hacked into and tampered with, so there can never be such a thing as a crime-proof card. No country has ever successfully produced a totally unforgeable ID card. Therefore, any increase in ID cards would create greater vulnerabilities to identity theft and fraud. “A national identity system is one more ill-conceived public policy that has been precipitated by the terrorist attacks of Sept. 11 (2001). It won’t make us any safer, but it will surely strangle our sense of freedom”, as stated in the article by Charles Levendosky.
The introduction of the credit card first came around while the economy was booming in the early 1950’s. American consumers were in buy mode and the credit card was a genius idea to let people buy now and pay later. At first look this idea seemed great but what looks and sounds great does not always mean that it is going to be great overall. Over the years credit agencies have released thousands of credit cards with several questionable polices and high interest rates. “Any given American family in the present day possesses an average of eight credit cards with about 15,000 dollars of debt”(Canner 8). Many consumers have become addicted to wasteful cyclic consumption and living beyond their income due to the ownership of credit cards. The invention and continued implementation of credit cards into the American economic and social systems appears to be the cause of the struggling economy, the weakened U.S. dollar, the sky rocketing prices of gas and grocery store goods, the all-time highs of American debt, and social deprivation in some regions.
The use of credit and debit cards today are taking a tour in the sense that electronic cash is becoming more admissible as the world makes a switch towar...
Security: Creating the NID card would breach more security then it would protect. If an NID card were taken at face value by even the lowest level security, its user would have a foot in the door and would be able to exploit it.
Covering the small pros first the card is much smaller from the our current ID card this helps a lot with portability, instead of having to carry around this large ID separate to all our other personal belongings creating just an extra thing that needs to be carried around. This small card would be able to fit in with all our credit cards and in a wallet or handbag, preventing unnecessary loss while travelling or while doing every day activities. The card is also much more durable and it could get wet without having to worry about whether or not it’s damaged. While these are all small reasons they nethertheless are pros for the user in their everyday life.(