Preventing fraud could be as easy as using PIN-based credit cards
The National Retail Federation recently approached the Senate about finding a safer way to conduct secure transactions. Security is important for both your business and your customers, but even if you have the most advanced and secure ecommerce software, hackers might be able to find a way into your POS system and access consumers' credit card information. One of the most promising ways of preventing this is creating a more secure payment system, starting with credit cards themselves.
There has been a push for PIN-based credit card systems that add an extra layer of security for consumers and retailers alike. Since this would involve costly upgrades for banks and retailers, it has been met with some opposition. However, the NRF's appeal to the Senate may help push this strategy into a reality.
"Protecting all cards with a PIN instead of a signature is the single most important fraud protection step that could be taken quickly," Mallory Duncan, the NRF's senior vice president and general counsel, told the Senate.
The problem with signature-based cards is that it is very easy for hackers to steal and duplicate the information, which not only threatens consumers but can also prove detrimental to businesses. The recent data breach at Target, for instance, cost the company $61 million, including covering customer losses and investigating the attack, according to Reuters. Finding a way to avoid data breaches like this in the future would be advantageous to all retailers.
