Credit card companies are undertaking a shift in technology to improve security. EMV, named for the companies that introduced it (Europay, MasterCard, Visa), incorporates the use of secure microchips that store a cardholderís authentication details and provide a higher level of security for in-person transactions. EMV has already been in wide use for years in Western Europe and other developed countries, according to NerdWallet.com.By Oct. 1 this year, U.S. merchants will be required to upgrade point-of-sale terminals to be EMV-compliant or else bear the liability for fraud committed using counterfeit cards. However, a 2011 VISA press release states that payment card terminals at automated fuel dispensers (gas pumps) are not required to be upgraded until Oct. 1, 2017, ìDue to the challenges faced by the petroleum industry in upgrading terminals to accept EMV chip cards.îImprovements in consumer notification have sometimes been slow to take root, particularly where legislation is involved. In Colorado, the 2006 Notification of Security Breach, which is under the Consumer Protection Act, requires that companies doing business in the state notify affected parties of data breaches involving personal information. As of Jan. 15, the National Conference of State Legislatures reported that only 47 states, the District of Columbia, Guam, Puerto Rico†and the Virgin Islands have enacted legislation requiring†private or government entities to notify individuals of security breaches of ìpersonally identifiable information.îOn Jan. 12, President Obama announced a new legislative proposal, the Personal Data Notification and Protection Act, which requires that companies notify customers of data breaches within 30 days of discovery of the breach.Consumer responsibilityCredit card companies and banks monitor accounts for changes in customer spending patterns that could signal fraud. In the war against a rising tide of hacks and data breaches, the consumer must also shoulder some of the responsibility for the security of their accounts.According to the FBI, Federal Trade Commission, bankrate.com):
- Never give out credit or debit card information to anyone who requests it over the phone or in an email. Legitimate companies will not ask for account information by phone or email.
- When shopping online, buy only from reputable retailers; donít trust a site just because it claims to be secure.
- Keep computer anti-virus protection up to date.
- Take advantage of mobile alerts offered by banks and credit card companies to identify unusual activity as quickly as possible.
- Regularly monitor accounts online to quickly identify fraudulent transactions.
- Avoid using public computers to check financial accounts.
- Set up a separate email account just for finances, and only check it from safe locations.
- Avoid doing business with unfamiliar online vendors and stick to established merchants and websites.
- Check bank and credit card statements as soon as they arrive and immediately report any unauthorized activity.
