New data reveals consumer concerns about credit card fraud

McLean, VA, 2017-Feb-20 — /EPR Retail News/ — Compromised credit cards and associated data breaches continue to dominate the headlines. In fact, over the past two years (2014-2016), data breaches worldwide rose 46 percent from the year prior (2013), according to creditcard.com.

New data from the Capital One Rewards Card Outlook underscores consumer concerns about this alarming rise in card-related fraud. More than 40 percent (42.3%) of respondents said superior fraud protection was the top or second most important feature when considering a new rewards card in 2017.

According to the Rewards Card Outlook:

–          Nearly 40 percent (39.8%) of rewards card holders would rather keep their cards in a mobile wallet. Millennials are even more eager to adopt this technology (58%).

–          Digital wallets are of particular importance since 39 percent of survey respondents thought they lost or misplaced their credit card this past year.

–          Nearly 13 percent (12.9%) actually lost their credit card in 2016 and nearly 25 percent (24.1%) had to get a new credit card issued due to fraudulent activity.

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NRF to Congress: new chip-and-signature credit cards without PIN will not stop data breaches

WASHINGTON, 2015-10-8 — /EPR Retail News/ — The National Retail Federation today told Congress that new chip-and-signature credit cards without a PIN will not stop data breaches, and that small businesses should not be pressured to install the equipment to accept them at the expense of more effective technology.

“The new EMV equipment does not stop breaches,” NRF Senior Vice President for Government Relations David French said. “Indeed, in many cases it provides no significant benefits either to the business or to the business’ regular customers. It is merely an additional expense small businesses are being told to bear.”

If small businesses are pushed to adopt Europay MasterCard Visa technology, alternatives such as mobile payment apps and other smartphone-based technology “may effectively be locked out of the market,” French said.

“These are important considerations that businesses of all sizes must carefully ponder,” French said. “It would be inappropriate to prejudge their decision-making and stampede businesses into the adoption of solutions less protective for businesses and consumers than what has existed throughout the industrialized world for more than a generation.”

Cards currently being issued by U.S. banks feature a computer microchip that will eventually replace cards’ easily copied magnetic stripe to store data. But French said the cards also need a secure personal identification number, or PIN, which would eventually replace easily forged signatures, as is done in all other countries that use EMV cards. While the chips make the cards more difficult to counterfeit, they do nothing to protect lost or stolen cards, while a PIN alone could prevent both types of fraud, he said.

While the new cards make it somewhat more difficult for criminals to use stolen card numbers, they do not actually prevent numbers from being stolen in the first place, and stolen numbers can still be used for online and other types of fraud.

French’s comments came in a statement submitted to the House Small Business Committee, which is holding a hearing today on what chip-based cards will mean for small businesses. Today’s hearing is scheduled to feature witnesses from the card industry, but another session with small businesses and retailers is expected to be held later this month. The hearing follows last week’s deadline for merchants to install chip-card readers or face increased fraud liability if a chip card is used in a non-chip reader.

French said credit and debit card fees are the second-largest expense for many small businesses after labor, and that the card industry imposes “a multitude of complex rules on small businesses.” Chip-card readers and installation can vary from “a few hundred dollars to thousands of dollars” per terminal, he said, with an industry average of $2,000.

NRF is the world’s largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet retailers from the United States and more than 45 countries. Retail is the nation’s largest private sector employer, supporting one in four U.S. jobs – 42 million working Americans. Contributing $2.6 trillion to annual GDP, retail is a daily barometer for the nation’s economy. NRF’s This is Retail campaign highlights the industry’s opportunities for life-long careers, how retailers strengthen communities, and the critical role that retail plays in driving innovation. NRF.com

J. Craig Shearman
(202) 626-8134
press@nrf.com
(855) NRF-Press

NRF presented Congress with achievable solutions to better protect consumers and help businesses prevent cyberattacks and data breaches

NRF Testifies on Congressional and Industry Efforts

WASHINGTON, 2015-3-19 — /EPR Retail News/ — The National Retail Federation today presented Congress with practical, commonsense and achievable solutions to better protect consumers and help businesses prevent cyberattacks and data breaches.

“We should not be satisfied with simply determining what to do after a data breach occurs,” NRF Senior Vice President for Government Relations David Frenchsaid. “Instead, it is important to look at why such breaches occur and what the perpetrators get out of them so that we can find ways to reduce and prevent not only the breaches themselves but the follow-on harm.”

French outlined six proposed solutions during his testimony before the House Oversight and Government Reform Committee’s Subcommittee on Information Technology including:

  • Expanding consumer liability protection for using debit cards;
  • Issuance of PIN-and-Chip cards that incorporate both computer microchips and use of a personal identification number (PIN) to authenticate a transaction;
  • Adoption of end-to-end data encryption throughout the payments system;
  • Developing open source, competitive tokenization standards to replace sensitive data with unique and unusable tokens;
  • Passage of a uniform nationwide breach notification law applying to all entities that handle sensitive customer information, and
  • Bolstering federal law enforcement investigation and prosecution of cybercriminals.

What retailers want you to know about data security from NRF on SlideShare

NRF’s recommendations were first proposed in an open letter to President Obama published in advance of the White House Summit on Cybersecurity and Consumer Protection last month.

“These are proposals that we believe policy makers can work together to achieve in the near term, either through consumer and industry-supported legislation or by working with the private sector on improving security practices outside of the lawmaking process,” French said.

In his testimony, French also reiterated NRF’s opposition to legislative efforts to impose on retailers, merchants and other nonbank businesses and individuals, the same Gramm-Leach-Bliley Act (GLBA) data security regulations designed for banks.

“Without the cooperation of our partners in the financial system, we cannot alone affect the changes necessary to better defend and protect against cyberattacks that lead to payment card fraud,” French said. “We need to work together to do what we can to improve an aging and outdated payment system that is the principal target of cyberattacks affecting U.S. retail businesses and their customers.”

NRF has been leading the retail industry’s efforts on cyber, data and payment security and has been working closely with its members, government officials, law enforcement agencies and other stakeholders to shore-up the retail industry’s defenses against cybercriminals.

NRF is the world’s largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet retailers from the United States and more than 45 countries. Retail is the nation’s largest private sector employer, supporting one in four U.S. jobs – 42 million working Americans. Contributing $2.6 trillion to annual GDP, retail is a daily barometer for the nation’s economy. NRF’s This is Retail campaign highlights the industry’s opportunities for life-long careers, how retailers strengthen communities, and the critical role that retail plays in driving innovation. www.nrf.com

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Stephen E. Schatz
202-626-8119
press@nrf.com
(855) NRF-Press