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Visa and MasterCard have little real interest in implementing effective security because they dont absorb fraud losses.
January 9 -
An American Banker poll finds that only 10% of financial institution executives say reissuing cards is too expensive and inconvenient.
December 27
JPMorgan Chase said it replaced 2 million payment cards after the breach of consumer data at retailers including Target Corp.
The threat to cardholder information "is a big deal, it's not going to go away" Chief Executive Officer Jamie Dimon said today on a conference call discussing fourth-quarter results at the New York-based bank.
Target, the second-largest U.S. discount chain, said late last year that credit- and debit-card data from 40 million accounts were compromised. The retailer said Jan. 10 that the recent security breach affected more people and more information than previously thought. Payments information was also compromised at Neiman Marcus Group Ltd.
"This story is not over, unfortunately," Dimon, 57, said. "You really have to put in extreme effort to protect yourself."
Stores and banks need to cooperate to prevent information from being breached rather than casting blame, Dimon said today.
"This might be a chance for retailers and banks to, for once, work together, you know, as opposed to sue each other, like we've been doing the last decade," he said. "All of us have a common interest in being protected."
Putnam Bank filed a suit against Target, claiming that the security breakdown cost the lender money because it forced the bank to issue customer alerts and new cards, while reimbursing account holders for losses. Credit-card lender American Express Co. said this month that it's appealing a federal judge's order approving a $5.7 billion settlement by Visa Inc. and MasterCard Inc. after years of litigation with U.S. merchants over allegations that credit-card swipe fees are improperly fixed.
