Identity Theft Ring Takedown Reveals the Need for... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Identity Theft Ring Takedown Reveals the Need for Better Security

Identity Theft Ring Takedown Reveals the Need for Better Security

Identity Theft Ring Takedown Reveals the Need for Better Security
The content is accurate at the time of publication and is subject to change.

Just last week New York City police participated in what very well may be the largest identity-theft bust in U.S. history. A grand total of 111 suspects were indicted. All of them are believed to be part of a global network of information hackers, credit card counterfeiters, and thieves involved in making fraudulent purchases amounting to an estimated $13 million.

“This is by far the largest and certainly amongst the most sophisticated identity-theft credit card fraud cases that any of us have ever seen,” Queens district attorney, Richard A. Brown, told The New York Times.

Somewhat disturbing to police and prosecutors, they report that early in their investigation, they received no tips from either credit card companies or retailers, despite the fact that balances on stolen accounts were increasing dramatically.

According to The New York Times, Mr. Brown also made the statement that credit companies were “putting too much money into marketing and not enough into security,” speculating that the companies, “would rather take the losses” than spend more on stronger security measures in order to prevent theft.

As reported by the huffingtonpost.com, David Robertson, publisher of The Nilson Report, claims that for every $100 in debit and credit card transactions made within the United States, 9 cents is lost to fraud. This is twice as much as the global average of 4.5 cents.

The commander of the NYC Police Department’s Identity Theft Squad, Deputy Inspector Gregory T. Antonsen, told The New York Times that law enforcement has been strongly pushing the business community to do what they can to improve security, arguing specifically for credit cards that are common in Europe, which have embedded identity chips.

Such “smart cards” require that cardholders punch in a personal identification number at the point of sale, similar to what American consumers do during debit card transactions. Smart cards better deter fraud by containing computer chips that encrypt transaction information, instead of using a magnetic swipe strip on the back.

“It makes it much harder to commit fraud,” David Robertson said to the huffingtonpost.com.

However, one of the biggest issues preventing U.S. banks from issuing smart cards is the expensive upgrades retailers would have to carry out to their payment systems.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Getting Quadruple Points with the New Business Gold Card by American Express

Posted: November 12, 2018

American Express is rolling out a new credit card for small businesses, offering quadruple reward points on the two categories in which they spend the most during the month. There are six categories they can earn these enhanced rewards in, ... Continue reading
Now Cardholders can use Ultimate Rewards for Apple Products

Posted: November 9, 2018

Chase credit card holders can now use their rewards to buy Apple products via the new Apple Ultimate Rewards Store. When shopping in the new store people with a Chase Sapphire, Freedom and Ink credit card can use their reward points to pay ... Continue reading
Contactless Credit Cards by Chase

Posted: November 8, 2018

Chase Cardholders will soon be able to make payments without swiping or dipping because Chase is going contactless. The new cards will have contactless technology built directly into the card. This way when they are at a contactless ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!