Skip to main content

Here in Hanover

Sponsored Content

American Consumers Need Better Protection

Jul 06, 2015 05:01AM, Published by Family Features, Categories: Family Features, Family Features Lifestyle




(Family Features) Data theft has become an issue that affects the lives of nearly everyone in the United States. At least six bills active in Congress this year aim to help mitigate problems with data security standards and practices. Yet, legislation is not necessary to take an immediate and giant leap forward toward better data security. Consumer credit card transactions should be much more secure — and could be today — but it continues to unnecessarily lag behind the rest of the world.

In October 2014, President Obama issued an Executive Order calling for all government-issued payment cards to be equipped with chip and PIN technology — the most secure payment system available today. Chip and PIN is the preferred security all over the world as it is used in most of Europe and Australia, as well as many parts of Africa and South America.

However, the big banks that issue major cards, credit unions and other financial institutions have not taken similar steps to protect their customers. Instead, they are replacing existing magnetic stripe cards with microchip-equipped cards that still rely on unsecure signatures as a form of verification.

“While it’s a small step in the right direction, they are consciously failing to protect their customers by not offering all of the available security measures. The PIN is a necessary element of the equation to protect consumers,” said Debra Berlyn, leader of ProtectMyData, a consumer education campaign advocating for the implementation of chip and PIN technology for credit and debit cards. “The PIN requirement adds a distinct layer of security and complexity to each transaction that dramatically reduces fraud.”

Financial information stored on existing payment cards’ magnetic stripes can be easily cloned and used to make counterfeit cards. What’s more, the signatures can be easily forged and are rarely ever used to verify the identity of someone making a transaction.

Chip and PIN cards are considerably more secure. First, an embedded microchip encrypts each transaction at point of sale and then requires a unique four-digit code to be entered to complete the transaction, similar to withdrawing money from the ATM. The microchip coupled with the PIN make tampering and counterfeiting the cards, along with stealing personal financial data, nearly impossible.

The combination of chip and PIN clearly provides American consumers the security they deserve. Now, it’s time for the banks and credit card companies to issue cards outfitted with this technology.

Get the Facts

MYTH: Current payment security measures are keeping consumers safe.
FACT: Not really. Card fraud is still a major issue that affects millions of Americans each year. The United States accounted for 47 percent of worldwide card fraud losses according to recent reports.

MYTH: The United States is a global leader in credit card security, using the most secure and cutting-edge technology available.
FACT: The United States is lagging behind. In fact, the United States is the last G-20 nation to issue chip-equipped cards. U.S. banks and credit card companies have been slow to provide consumers with chip and PIN protections that are commonplace around the world.

MYTH: Chip-equipped cards without PIN requirements provide sufficient security.
FACT: Chip-equipped cards that rely on signature validation and not PIN technology do not fully protect consumers. Only the chip and PIN combination offers a two-step verification process that is nearly impossible to clone.

MYTH: Consumers are moving away from credit cards.
FACT: While payment alternatives like ApplePay and other mobile options are slowly entering the market, nearly three-quarters of all Americans had at least one credit card in 2014. Moreover, not every American consumer has the means to use more sophisticated mobile payment options and others — particularly consumers with more modest means — rely on paying with credit at times.

MYTH: The implementation of chip and PIN will drive hackers online, rendering in-store protections like PINs or signatures less important.
FACT: Brick and mortar stores remain a bedrock component of the American economy and the retail industry. Most Americans still rely on offline shopping for the majority of their retail purchases.

To learn more about efforts underway to help secure your everyday transactions, visit www.protectmydata.org.

Photo courtesy of Getty Images (woman shopping)

Sponsored by ProtectMyData


Like what you're reading? Subscribe to Here in Hanover's free newsletter to catch every headline



Family Features Family Features Lifestyle


It looks like we don't have any events for this date. You can always add an event.

It looks like we don't have any events for this date. You can always add an event.

  • Grounded

    03/29/2017
    07:30PM

    Northern Stage presents this fiercely relevant and compelling one woman show that explores the co...


  • Grounded

    03/29/2017
    07:30PM

    Northern Stage presents this fiercely relevant and compelling one woman show that explores the co...


  • You Come Too

    03/30/2017
    06:30PM — 07:45PM

    On Thursday, March 30, 2017 from 6:30 – 7:45pm the Crossroads Academy seventh grade will host You...


  • Grounded

    03/30/2017
    07:30PM

    Northern Stage presents this fiercely relevant and compelling one woman show that explores the co...


  • Grounded

    03/30/2017
    07:30PM

    Northern Stage presents this fiercely relevant and compelling one woman show that explores the co...


  • Grounded

    03/31/2017
    07:30PM

    Northern Stage presents this fiercely relevant and compelling one woman show that explores the co...


  • Grounded

    03/31/2017
    07:30PM

    Northern Stage presents this fiercely relevant and compelling one woman show that explores the co...


  • Grounded

    04/01/2017
    07:30PM

    Northern Stage presents this fiercely relevant and compelling one woman show that explores the co...


  • Grounded

    04/01/2017
    07:30PM

    Northern Stage presents this fiercely relevant and compelling one woman show that explores the co...


It looks like we don't have any events for this date. You can always add an event.

  • Grounded

    03/29/2017
    07:30PM

    Northern Stage presents this fiercely relevant and compelling one woman show that explores the co...


  • Grounded

    03/29/2017
    07:30PM

    Northern Stage presents this fiercely relevant and compelling one woman show that explores the co...


  • You Come Too

    03/30/2017
    06:30PM — 07:45PM

    On Thursday, March 30, 2017 from 6:30 – 7:45pm the Crossroads Academy seventh grade will host You...


  • Grounded

    03/30/2017
    07:30PM

    Northern Stage presents this fiercely relevant and compelling one woman show that explores the co...


  • Grounded

    03/30/2017
    07:30PM

    Northern Stage presents this fiercely relevant and compelling one woman show that explores the co...


  • Grounded

    03/31/2017
    07:30PM

    Northern Stage presents this fiercely relevant and compelling one woman show that explores the co...


  • Grounded

    03/31/2017
    07:30PM

    Northern Stage presents this fiercely relevant and compelling one woman show that explores the co...


  • Grounded

    04/01/2017
    07:30PM

    Northern Stage presents this fiercely relevant and compelling one woman show that explores the co...


  • Grounded

    04/01/2017
    07:30PM

    Northern Stage presents this fiercely relevant and compelling one woman show that explores the co...


  • PRE-REGISTRATION FOR THIS EVENT IS REQUIRED. Community Programs have been offered through the Ras...


  • Mud Ball

    04/08/2017
    07:00PM — 11:00PM

    It’s almost time for the 9th annual Mud Ball! We hope you can join us for an evening of live ...


  • Mud Ball

    04/08/2017
    07:00PM — 11:00PM

    Each year a local philanthropic committee comes together to organize and host the Mud Ball wh...


  • Crossroads Academy - Discover the Difference

    04/10/2017
    09:00AM — 11:00AM

    Please join us for a Discover the Difference morning on Monday April 10, 2017 from 9:00-11:00 am ...


 

 


PROUDLY BROUGHT TO YOU BY THESE COMMUNITY SPONSORS


Northcape Design Build
Hanover Inn at Dartmouth
Ultimate Bath Store

Sean's Lawn N' Garden Services
Cabinetry Concepts
New London Inn & Coach House Restaurant