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Better security deployed by the card processors, the banks and the ATM operators could have detected and thwarted the complex scheme in which millions were stolen from two Middle Eastern banks.
May 10 -
The recent crime spree that netted $45 million in fraudulent ATM withdrawals adds to the many reasons banks approach prepaid products with caution.
May 10
The recent $45 million ATM heist is dramatic evidence of the urgent need for improvements to payment card security.
Hackers infiltrating two payment processors in India
U.S. bankers may be wondering if the introduction of Europay MasterCard Visa authentication will be the panacea to reduce fraud resulting from counterfeit, lost and stolen cards. If EMV1 (chip and PIN)- enabled payment cards were widely supported in the U.S., would it have been possible for criminals to
Recently, MasterCard, Visa, American Express and Discover incentivized adoption of EMV by moving to shift liability away from the issuer to acquirers. This means that, after a certain date, if an entity, which owns and operates an ATM or point-of-sale terminal, facilitates a transaction for an EMV-enabled card that turns out to fraudulent, the acquirer can be held liable for the loss. It appears that many banks are freaking out because they feel that the
According to
One can certainly argue that improvements are needed. The U.S. is ranked number one in terms of skimmer fraud losses, according to the
If EMV-compliant ATMs are successfully implemented, then skimmer and ATM fraud will be eliminated in the U.S., right? Not so fast. If we look at
Agreements are always preferred over mandates. If the banking industry and the card issuers can discuss an EMV adoption plan, then a mutually beneficial strategy can be implemented instead of the air of consternation that currently prevails. Banks feel that an unrealistic timetable has been forced upon them. ATM fraud will still occur, regardless of whether EMV is adopted, but EMV will diminish the role of the U.S. as the world's ATM for stolen payment cards.
Darren Hayes chairs the computer information systems program at Pace Universitys Seidenberg School of Computer Science and Information Systems in New York.